Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow strengthened and capital expenditure remained minimal. Compared to the same quarter last year, free cash flow was lower due to a decrease in operating cash flow.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose sequentially but fell relative to the prior year, resulting in a higher free cash flow margin than the previous quarter yet lower than the year-ago period.
- Compared to the immediately preceding quarter, revenue and operating cash flow both increased, and the free cash flow margin improved. Relative to the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened margin.
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
$470.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$473.0M
Cash generated by operations before capital spending.
CapEx
$3.0M
Capital spending and related asset purchases.
FCF margin
46.5%
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 |
|---|---|---|---|---|---|
| 2024-06-28 | $965.0M | $264.0M | $2.0M | $262.0M | 27.2% |
| 2024-09-27 | $974.0M | $158.0M | $2.0M | $156.0M | 16.0% |
| 2024-12-27 | $986.0M | $326.0M | $8.0M | $318.0M | 32.3% |
| 2025-03-28 | $1.0B | $473.0M | $3.0M | $470.0M | 46.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 331.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.3B | 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 Fluctuation
Operating cash flow improved from the prior quarter but declined sharply from the year-ago quarter. This change is the primary factor behind the sequential improvement and the year-over-year weakening in free cash flow.
Future free cash flow will depend on whether operating cash flow sustains its sequential improvement or reverts toward the prior year level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose sequentially but fell relative to the prior year, resulting in a higher free cash flow margin than the previous quarter yet lower than the year-ago period.
Compared to the immediately preceding quarter, revenue and operating cash flow both increased, and the free cash flow margin improved. Relative to the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened margin.
Monitor the trend in operating cash flow, as it drives free cash flow and has shown significant variability.