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, while free cash flow declined sequentially but improved year over year. The company continues to rely on operating cash flow for liquidity, with a capital allocation strategy that balances stockholder returns, financial risk management, and strategic flexibility, as described in the filing.
- Operating cash flow rose year over year but fell sequentially, despite higher revenue. Capital expenditure increased slightly in both comparisons, resulting in free cash flow trends that mirrored operating cash flow.
- Sequentially, revenue rose while operating cash flow and free cash flow declined, leading to a lower free cash flow margin. Compared to the same quarter last year, all metrics improved, with revenue, operating cash flow, and free cash flow all higher and margin expanded.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$405.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$409.0M
Cash generated by operations before capital spending.
CapEx
$4.0M
Capital spending and related asset purchases.
FCF margin
32.2%
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 |
|---|---|---|---|---|---|
| 2024-09-27 | $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% |
| 2025-07-04 | $1.3B | $409.0M | $4.0M | $405.0M | 32.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 300.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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.
Revenue Growth
Revenue was higher than both the prior quarter and the year-ago quarter, representing the primary driver of year-over-year free cash flow improvement. However, the increase in revenue was not matched by a proportional rise in operating cash flow sequentially, indicating a change in cash conversion.
Higher revenue supported stronger free cash flow compared to last year, but the sequential mismatch between revenue and operating cash flow warrants monitoring.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose year over year but fell sequentially, despite higher revenue. Capital expenditure increased slightly in both comparisons, resulting in free cash flow trends that mirrored operating cash flow.
Sequentially, revenue rose while operating cash flow and free cash flow declined, leading to a lower free cash flow margin. Compared to the same quarter last year, all metrics improved, with revenue, operating cash flow, and free cash flow all higher and margin expanded.
Monitor operating cash flow trends relative to revenue growth, as the sequential decline in cash conversion despite higher revenue may indicate changing working capital dynamics.