Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the year-ago quarter but declined from the prior quarter, as revenue growth was offset by lower operating cash flow. The cash conversion margin weakened sequentially while still remaining higher than the year-ago period.
- Revenue increased compared to both the prior quarter and the year-ago quarter. Operating cash flow rose from the year-ago level but fell from the prior quarter, while capital expenditure remained stable. Consequently, free cash flow and its margin improved year over year but weakened sequentially.
- Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin were lower, despite higher revenue. Versus the year-ago quarter, all metrics improved or were higher, except capital expenditure which was stable.
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
$476.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$479.0M
Cash generated by operations before capital spending.
CapEx
$3.0M
Capital spending and related asset purchases.
FCF margin
37.1%
The share of revenue converted into free cash flow.
TTM FCF yield
9.4%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-07-04 | $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% |
| 2026-04-03 | $1.3B | $479.0M | $3.0M | $476.0M | 37.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | 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 Efficiency
Revenue was higher than both comparison periods, but operating cash flow did not keep pace with the prior quarter, causing free cash flow to decline sequentially. The company notes its historical reliance on cash generated from operations and its balanced capital allocation strategy, which includes dividends and share repurchases.
If the trend persists, free cash flow may face pressure even as revenue grows.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the year-ago quarter. Operating cash flow rose from the year-ago level but fell from the prior quarter, while capital expenditure remained stable. Consequently, free cash flow and its margin improved year over year but weakened sequentially.
Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin were lower, despite higher revenue. Versus the year-ago quarter, all metrics improved or were higher, except capital expenditure which was stable.
Monitor operating cash flow trends, as the sequential decline despite rising revenue may indicate changing cash conversion dynamics.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $16.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | 9.4% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.