Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow held stable while revenue rose, causing free cash flow margin to narrow slightly versus the prior year. Capital expenditure declined year over year, providing partial offset to the lower operating cash conversion.
- Revenue increased year over year and sequentially, yet operating cash flow stayed flat with the prior year and matched the preceding quarter. Free cash flow margin matched the preceding quarter but was lower than the year-ago quarter, indicating a weaker conversion of revenue into free cash flow.
- Compared to the preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all similar, with free cash flow margin unchanged. Versus the year-ago quarter, revenue was higher while operating cash flow was lower and free cash flow was the same, resulting in a lower free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$248.0M
Capital spending and related asset purchases.
FCF margin
18.4%
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 |
|---|---|---|---|---|---|
| 2024-09-27 | $5.8B | $1.5B | $298.0M | $1.2B | 21.0% |
| 2024-12-31 | $6.5B | $2.0B | $516.0M | $1.5B | 23.0% |
| 2025-03-28 | $5.7B | $1.3B | $245.0M | $1.1B | 18.4% |
| 2025-06-27 | $5.9B | $1.3B | $248.0M | $1.1B | 18.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 196.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | 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 Stability
Operating cash flow remained steady at the same level as the prior quarter and the previous year, despite higher revenue. This stability was the strongest observable driver, as it constrained free cash flow margin improvement.
The unchanged operating cash flow relative to revenue growth is the primary factor behind the weakened free cash flow margin compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased year over year and sequentially, yet operating cash flow stayed flat with the prior year and matched the preceding quarter. Free cash flow margin matched the preceding quarter but was lower than the year-ago quarter, indicating a weaker conversion of revenue into free cash flow.
Compared to the preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all similar, with free cash flow margin unchanged. Versus the year-ago quarter, revenue was higher while operating cash flow was lower and free cash flow was the same, resulting in a lower free cash flow margin.
Monitor whether operating cash flow can improve relative to revenue to restore free cash flow margin to prior levels.