Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Despite a sharp decline in revenue, operating cash flow remained substantial, resulting in a very high free cash flow margin. The company generated positive free cash flow even as revenue dropped significantly from the prior quarter and the year-ago period.
- Operating cash flow far exceeded revenue, indicating very strong cash conversion from operations. Capital expenditure was modest relative to operating cash flow, supporting free cash flow.
- Compared to the prior quarter, revenue and operating cash flow were both lower, but free cash flow margin improved dramatically due to the smaller revenue base. Versus the same quarter last year, revenue turned from negative to positive, while operating cash flow and free cash flow were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$135.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$164.4M
Cash generated by operations before capital spending.
CapEx
$28.6M
Capital spending and related asset purchases.
FCF margin
311.5%
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 | $1.1B | $502.2M | $22.6M | $479.6M | 44.7% |
| 2025-03-28 | $993.1M | $241.7M | $21.1M | $220.6M | 22.2% |
| 2025-06-27 | $2.0B | $311.2M | $36.7M | $274.5M | 13.7% |
| 2025-09-26 | $43.6M | $164.4M | $28.6M | $135.8M | 311.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 246.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 65.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue and cash flow divergence
Revenue in the current quarter was exceptionally low, yet operating cash flow remained strong, creating a large divergence between revenue and cash generation. This unusual pattern warrants close observation.
If revenue normalizes without a corresponding increase in cash flow, the free cash flow margin could decline significantly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow far exceeded revenue, indicating very strong cash conversion from operations. Capital expenditure was modest relative to operating cash flow, supporting free cash flow.
Compared to the prior quarter, revenue and operating cash flow were both lower, but free cash flow margin improved dramatically due to the smaller revenue base. Versus the same quarter last year, revenue turned from negative to positive, while operating cash flow and free cash flow were lower.
Monitor the sustainability of the current revenue level, as the extremely high free cash flow margin is largely driven by exceptionally low revenue.