Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved versus both periods, supported by higher operating cash flow.
- Operating cash flow rose relative to revenue, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter but slightly below the year-ago level, contributing to the improvement in free cash flow.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all increased. Versus the same quarter last year, revenue and operating cash flow were higher, while capital expenditure was slightly lower, resulting in a higher free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$712.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$309.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$376.8M
Cash generated by operations before capital spending.
CapEx
$67.1M
Capital spending and related asset purchases.
FCF margin
13.6%
The share of revenue converted into free cash flow.
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 |
|---|---|---|---|---|---|
| 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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 186.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | 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 Growth
Operating cash flow increased sequentially and year-over-year, outpacing revenue growth. This was the primary factor behind the improvement in free cash flow and margin.
Higher operating cash flow directly boosted free cash flow and margin without requiring a proportional increase in capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to revenue, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter but slightly below the year-ago level, contributing to the improvement in free cash flow.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all increased. Versus the same quarter last year, revenue and operating cash flow were higher, while capital expenditure was slightly lower, resulting in a higher free cash flow and margin.
Monitor the trend in capital expenditure relative to operating cash flow, as it directly influences free cash flow conversion.