Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased sequentially but increased year over year. Free cash flow weakened significantly from both the prior quarter and the same quarter last year, as operating cash flow declined while capital expenditure rose.
- Cash conversion weakened sharply: operating cash flow as a share of revenue contracted from the prior quarter and the year-ago period. Higher capital expenditure further reduced free cash flow, resulting in a notably lower free cash flow margin.
- Compared with the immediately preceding quarter, free cash flow was sharply lower due to a large drop in operating cash flow and a moderate increase in capital spending. Versus the same quarter one year earlier, free cash flow also declined, despite higher revenue, as operating cash flow fell and capital expenditure grew.
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
$107.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$116.0M
Cash generated by operations before capital spending.
CapEx
$9.0M
Capital spending and related asset purchases.
FCF margin
8.8%
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 |
|---|---|---|---|---|---|
| 2024-12-27 | $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% |
| 2025-10-03 | $1.2B | $116.0M | $9.0M | $107.0M | 8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 79.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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.
Operating cash flow decline
Operating cash flow fell substantially compared with both the prior quarter and the year-ago period, despite revenue being higher year over year. This drove the significant reduction in free cash flow and margin.
The weakening of operating cash flow was the primary factor behind the lower free cash flow generation this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened sharply: operating cash flow as a share of revenue contracted from the prior quarter and the year-ago period. Higher capital expenditure further reduced free cash flow, resulting in a notably lower free cash flow margin.
Compared with the immediately preceding quarter, free cash flow was sharply lower due to a large drop in operating cash flow and a moderate increase in capital spending. Versus the same quarter one year earlier, free cash flow also declined, despite higher revenue, as operating cash flow fell and capital expenditure grew.
Monitor the trajectory of operating cash flow in coming quarters, as it declined markedly from both prior periods.