Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Flex Ltd.'s free cash flow margin improved this quarter compared to the prior quarter and the same quarter one year earlier. Operating cash flow growth was the primary driver of the increase, even as the quarter included an unusual charge from a missile strike on a manufacturing facility.
- Revenue and operating cash flow both increased, with operating cash flow growing at a faster pace than revenue. Capital expenditure also rose, but free cash flow still improved as a result of the strong cash conversion.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, leading to a higher margin. Versus the same quarter last year, all metrics improved, with the free cash flow margin showing notable expansion.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$303.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$453.0M
Cash generated by operations before capital spending.
CapEx
$150.0M
Capital spending and related asset purchases.
FCF margin
4.5%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $6.6B | $413.0M | $112.0M | $301.0M | 4.6% |
| 2025-03-31 | $6.4B | $433.0M | $112.0M | $321.0M | 5.0% |
| 2025-06-27 | $6.6B | $399.0M | $133.0M | $266.0M | 4.0% |
| 2025-09-26 | $6.8B | $453.0M | $150.0M | $303.0M | 4.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 152.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.4B | 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 more than revenue compared to both the prior quarter and the year-ago quarter, indicating improved cash conversion efficiency.
This contributed to a higher free cash flow margin despite higher capital expenditures.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both increased, with operating cash flow growing at a faster pace than revenue. Capital expenditure also rose, but free cash flow still improved as a result of the strong cash conversion.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, leading to a higher margin. Versus the same quarter last year, all metrics improved, with the free cash flow margin showing notable expansion.
Monitor the potential financial impact from geopolitical events on the company's manufacturing operations, as indicated by the recent missile strike.