Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow showed strong improvement from both the prior quarter and the same period a year earlier. The increase was primarily driven by a substantial rise in operating cash flow.
- Revenue was unchanged from the previous quarter but grew compared to a year ago. Operating cash flow and free cash flow both increased significantly, leading to a much improved free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and margin were substantially higher. Versus the same quarter a year earlier, free cash flow and margin also improved notably.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$535.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$541.0M
Cash generated by operations before capital spending.
CapEx
$6.0M
Capital spending and related asset purchases.
FCF margin
43.1%
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 |
|---|---|---|---|---|---|
| 2025-03-28 | $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% |
| 2026-01-02 | $1.2B | $541.0M | $6.0M | $535.0M | 43.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 278.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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 Strength
The sharp increase in operating cash flow was the primary driver of free cash flow improvement, while capital expenditure remained limited. This is consistent with the company's stated reliance on operating cash for liquidity needs.
The resulting free cash flow margin was well above levels seen in the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the previous quarter but grew compared to a year ago. Operating cash flow and free cash flow both increased significantly, leading to a much improved free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and margin were substantially higher. Versus the same quarter a year earlier, free cash flow and margin also improved notably.
The company expects to fund synergy costs related to the MoneyLion acquisition from operating cash flows; therefore, the pace of integration spending is a concrete item to track.