Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and free cash flow margin declined compared to both the immediately preceding quarter and the same quarter one year earlier. The decrease was primarily driven by a reduction in operating cash flow, partially offset by lower capital expenditure.
- Operating cash flow converted to free cash flow after capital spending, with the resulting margin weakening versus both prior periods. The decline in conversion efficiency reflected the larger proportional drop in operating cash flow relative to the reduction in capital expenditure.
- Revenue, operating cash flow, and free cash flow were all lower compared to the preceding quarter and the year-ago quarter. The free cash flow margin also weakened sequentially and year-over-year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$287.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$397.0M
Cash generated by operations before capital spending.
CapEx
$109.5M
Capital spending and related asset purchases.
FCF margin
6.4%
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 |
|---|---|---|---|---|---|
| 2024-11-24 | $5.2B | $1.2B | $160.9M | $989.6M | 18.9% |
| 2025-02-23 | $4.8B | $531.9M | $103.9M | $428.0M | 8.8% |
| 2025-05-25 | $4.6B | $611.6M | $220.2M | $391.4M | 8.6% |
| 2025-08-24 | $4.5B | $397.0M | $109.5M | $287.5M | 6.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 23.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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.
Reduced Operating Cash Flow
Operating cash flow decreased significantly from the prior year, driven by a decrease in net earnings excluding a divestiture gain and a change in current liabilities, partly offset by other balance sheet movements.
This decline in operating cash flow was the primary factor behind the lower free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted to free cash flow after capital spending, with the resulting margin weakening versus both prior periods. The decline in conversion efficiency reflected the larger proportional drop in operating cash flow relative to the reduction in capital expenditure.
Revenue, operating cash flow, and free cash flow were all lower compared to the preceding quarter and the year-ago quarter. The free cash flow margin also weakened sequentially and year-over-year.
Monitor the effect of divestiture-related tax obligations on operating cash flow in future quarters.