Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow turned positive from a negative position a year earlier, while the free cash flow margin improved to a positive level. Sequentially, however, both operating cash flow and free cash flow declined from the prior quarter.
- Revenue was broadly stable compared with the prior quarter, but operating cash flow decreased sharply, resulting in a lower free cash flow margin. Capital expenditure also declined, partly offsetting the drop in operating cash flow.
- Compared with the immediately preceding quarter, free cash flow and operating cash flow were lower, and the free cash flow margin weakened. Compared with the same quarter one year earlier, free cash flow improved from a negative position and the margin turned positive, while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$872.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$108.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$136.5M
Cash generated by operations before capital spending.
CapEx
$28.3M
Capital spending and related asset purchases.
FCF margin
4.7%
The share of revenue converted into free cash flow.
TTM FCF yield
7.3%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $136.5M | Cash generated by operations before capital spending. |
| Capital expenditures | $28.3M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $108.2M | Operating cash flow less capital spending. |
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2022-07-02 | $2.3B | $268.2M | $57.1M | $211.1M | 9.0% |
| 2022-10-01 | $2.3B | $220.8M | $76.4M | $144.4M | 6.2% |
| 2022-12-31 | $2.0B | $345.8M | $94.9M | $250.9M | 12.4% |
| 2023-04-01 | $2.1B | $1.9M | $64.5M | -$62.6M | -3.0% |
| 2023-07-01 | $2.1B | $189.6M | $51.4M | $138.2M | 6.6% |
| 2023-09-30 | $2.1B | $322.6M | $57.1M | $265.5M | 12.7% |
| 2023-12-30 | $2.1B | $311.9M | $92.3M | $219.6M | 10.4% |
| 2024-03-30 | $2.2B | $119.8M | $48.8M | $71.0M | 3.3% |
| 2024-06-29 | $2.2B | $197.7M | $47.5M | $150.2M | 6.7% |
| 2024-09-28 | $2.2B | $270.1M | $43.0M | $227.1M | 10.4% |
| 2024-12-28 | $2.2B | $351.2M | $69.5M | $281.7M | 12.9% |
| 2025-03-29 | $2.1B | -$16.3M | $36.0M | -$52.3M | -2.4% |
| 2025-06-28 | $2.2B | $208.8M | $30.0M | $178.8M | 8.1% |
| 2025-09-27 | $2.2B | $312.1M | $35.9M | $276.2M | 12.5% |
| 2025-12-31 | $2.3B | $376.8M | $67.1M | $309.7M | 13.6% |
| 2026-03-31 | $2.3B | $136.5M | $28.3M | $108.2M | 4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 64.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating cash flow volatility
Operating cash flow declined sharply from the prior quarter despite revenue staying essentially flat. This was the strongest observable driver of the reduction in free cash flow.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was broadly stable compared with the prior quarter, but operating cash flow decreased sharply, resulting in a lower free cash flow margin. Capital expenditure also declined, partly offsetting the drop in operating cash flow.
Compared with the immediately preceding quarter, free cash flow and operating cash flow were lower, and the free cash flow margin weakened. Compared with the same quarter one year earlier, free cash flow improved from a negative position and the margin turned positive, while revenue was higher.
Monitor whether the level of operating cash flow sustains its positive trajectory relative to the year-ago period, given the sequential decline.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $12.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 7.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |