Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Flex's free cash flow decreased compared to both the prior quarter and the same quarter last year, despite higher revenue. The free cash flow margin also declined, reflecting a weaker conversion of revenue into free cash flow.
- Revenue increased from the prior quarter and the year-ago period, while operating cash flow decreased sequentially but increased year-over-year. Capital expenditure rose compared to the year-ago period, contributing to a lower free cash flow and margin.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, as operating cash flow declined and capital expenditure remained similar. Versus the same quarter one year earlier, revenue was higher but free cash flow was lower, with capital expenditure notably higher.
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
$272.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$420.0M
Cash generated by operations before capital spending.
CapEx
$148.0M
Capital spending and related asset purchases.
FCF margin
3.9%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $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% |
| 2025-12-31 | $7.1B | $420.0M | $148.0M | $272.0M | 3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 113.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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.
Cash conversion efficiency
Revenue grew compared to both prior periods, but free cash flow margin contracted, indicating that a smaller proportion of revenue was converted into free cash flow. This was driven by lower operating cash flow relative to revenue and higher capital expenditure versus the year-ago quarter.
The weakening conversion resulted in lower free cash flow despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter and the year-ago period, while operating cash flow decreased sequentially but increased year-over-year. Capital expenditure rose compared to the year-ago period, contributing to a lower free cash flow and margin.
Compared to the immediately preceding quarter, free cash flow and margin were lower, as operating cash flow declined and capital expenditure remained similar. Versus the same quarter one year earlier, revenue was higher but free cash flow was lower, with capital expenditure notably higher.
Monitor the impact of asset impairments and charges related to the missile strike on Flex's Ukraine facility, as disclosed in the filing.