Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but operating cash flow declined, resulting in lower free cash flow and a weakened free cash flow margin. The company's cash conversion efficiency decreased relative to both comparison periods.
- Revenue was higher than both the immediately preceding quarter and the year-ago quarter, while operating cash flow was lower than both. Capital expenditure was lower than the prior quarter but slightly higher than the year-ago quarter. Consequently, free cash flow and free cash flow margin were lower than both comparison periods.
- Compared to the prior quarter, revenue improved but operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were lower, indicating a mixed but overall weaker cash conversion profile.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$642.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$146.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$162.0M
Cash generated by operations before capital spending.
CapEx
$15.0M
Capital spending and related asset purchases.
FCF margin
12.8%
The share of revenue converted into free cash flow.
TTM FCF yield
6.2%
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 | $162.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $15.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $146.9M | 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 |
|---|---|---|---|---|---|
| 2022-03-27 | $1.0B | $78.8M | $12.5M | $66.3M | 6.6% |
| 2022-06-19 | $1.1B | $74.6M | $20.2M | $54.4M | 5.1% |
| 2022-09-11 | $1.1B | $176.7M | $17.8M | $158.9M | 14.9% |
| 2023-03-26 | $1.0B | $114.7M | $19.0M | $95.7M | 9.3% |
| 2023-06-18 | $1.0B | $127.6M | $18.9M | $108.7M | 10.6% |
| 2023-09-10 | $1.0B | $179.8M | $21.3M | $158.5M | 15.4% |
| 2024-03-24 | $1.1B | $123.5M | $20.2M | $103.3M | 9.5% |
| 2024-06-16 | $1.1B | $150.7M | $23.5M | $127.2M | 11.6% |
| 2024-09-08 | $1.1B | $172.7M | $27.1M | $145.6M | 13.5% |
| 2025-03-23 | $1.1B | $179.1M | $14.7M | $164.3M | 14.8% |
| 2025-06-15 | $1.1B | $187.8M | $20.5M | $167.3M | 14.6% |
| 2025-09-07 | $1.1B | $185.4M | $21.4M | $164.0M | 14.3% |
| 2026-03-22 | $1.2B | $162.0M | $15.0M | $146.9M | 12.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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 decline
Operating cash flow decreased compared to both the prior quarter and the year-ago quarter, despite higher revenue. This decline was the primary factor behind the lower free cash flow and margin.
The weakening of operating cash flow relative to revenue suggests reduced cash conversion efficiency, which may warrant attention to working capital or other cash flow components.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the immediately preceding quarter and the year-ago quarter, while operating cash flow was lower than both. Capital expenditure was lower than the prior quarter but slightly higher than the year-ago quarter. Consequently, free cash flow and free cash flow margin were lower than both comparison periods.
Compared to the prior quarter, revenue improved but operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were lower, indicating a mixed but overall weaker cash conversion profile.
Monitor the trend in retail sales growth and store count expansion, as the filing notes an increase in both U.S. and international retail sales and store counts during the quarter.
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 | $10.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 6.2% | 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. |