Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and the same quarter last year. Operating cash flow declined, turning free cash flow negative due to capital expenditure exceeding operating cash flow.
- Revenue was nearly unchanged, but operating cash flow weakened meaningfully, reversing from positive to negative free cash flow as capital expenditure remained elevated relative to cash from operations. The free cash flow margin turned negative, reflecting the gap between operating cash generation and investment spending.
- Compared to the prior quarter, revenue was flat while operating cash flow was lower and capital expenditure was lower, yet free cash flow swung from positive to negative. Versus the same quarter a year ago, revenue was slightly higher but operating cash flow was substantially lower, and free cash flow shifted from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$391.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$14.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$41.1M
Cash generated by operations before capital spending.
CapEx
$55.9M
Capital spending and related asset purchases.
FCF margin
-1.5%
The share of revenue converted into free cash flow.
TTM FCF yield
3.5%
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 | $41.1M | Cash generated by operations before capital spending. |
| Capital expenditures | $55.9M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$14.8M | 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 |
|---|---|---|---|---|---|
| 2022-06-25 | $973.1M | $149.5M | $82.9M | $66.6M | 6.8% |
| 2022-09-24 | $989.2M | $132.8M | $72.4M | $60.4M | 6.1% |
| 2022-12-31 | $1.1B | $234.8M | $89.0M | $145.7M | 13.3% |
| 2023-04-01 | $1.0B | $109.4M | $106.9M | $2.5M | 0.2% |
| 2023-07-01 | $1.1B | $148.1M | $67.4M | $80.7M | 7.6% |
| 2023-09-30 | $1.0B | $205.4M | $65.9M | $139.5M | 13.6% |
| 2023-12-30 | $1.0B | $220.9M | $78.3M | $142.6M | 14.1% |
| 2024-03-30 | $1.0B | $129.9M | $79.1M | $50.7M | 5.0% |
| 2024-06-29 | $1.0B | $193.5M | $39.5M | $154.0M | 15.0% |
| 2024-09-28 | $1.0B | $251.8M | $38.7M | $213.1M | 21.1% |
| 2024-12-28 | $1.0B | $159.4M | $75.6M | $83.7M | 8.4% |
| 2025-03-29 | $984.2M | $171.7M | $59.3M | $112.4M | 11.4% |
| 2025-06-28 | $1.0B | $204.6M | $35.3M | $169.3M | 16.4% |
| 2025-09-27 | $1.0B | $213.8M | $35.6M | $178.2M | 17.7% |
| 2025-12-27 | $994.2M | $147.5M | $89.0M | $58.6M | 5.9% |
| 2026-03-28 | $995.8M | $41.1M | $55.9M | -$14.8M | -1.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.6% | 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.
Capital Expenditure Outpacing Operating Cash Flow
The strongest observable driver is capital expenditure exceeding operating cash flow, which reversed free cash flow from positive in both comparison periods to negative in the current quarter. Operating cash flow declined while revenue remained stable, indicating reduced conversion efficiency.
This combination of stable revenue, lower operating cash flow, and sustained capital expenditure has turned free cash flow and its margin negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was nearly unchanged, but operating cash flow weakened meaningfully, reversing from positive to negative free cash flow as capital expenditure remained elevated relative to cash from operations. The free cash flow margin turned negative, reflecting the gap between operating cash generation and investment spending.
Compared to the prior quarter, revenue was flat while operating cash flow was lower and capital expenditure was lower, yet free cash flow swung from positive to negative. Versus the same quarter a year ago, revenue was slightly higher but operating cash flow was substantially lower, and free cash flow shifted from positive to negative.
Monitor whether operating cash flow and capital expenditure trends persist, as capital expenditure currently exceeds operating cash flow, driving negative free cash flow.
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 | $11.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.5% | 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. |