Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sequentially despite a decline in revenue, as capital expenditure decreased more than operating cash flow. Compared to the same quarter last year, free cash flow margin was lower, with operating cash flow and free cash flow both lower.
- Revenue was lower than the prior quarter, and operating cash flow also declined. Capital expenditure was significantly lower, resulting in free cash flow that was slightly lower than the prior quarter but at a higher margin relative to revenue.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, but free cash flow margin improved due to a sharper reduction in capital expenditure. Versus the same quarter one year earlier, revenue was higher, yet operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$380.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$420.8M
Cash generated by operations before capital spending.
CapEx
$40.1M
Capital spending and related asset purchases.
FCF margin
24.8%
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 |
|---|---|---|---|---|---|
| 2024-06-29 | $1.5B | $255.3M | $37.2M | $218.2M | 14.5% |
| 2024-09-28 | $1.6B | $258.0M | $38.5M | $219.4M | 13.8% |
| 2024-12-28 | $1.8B | $483.9M | $84.7M | $399.2M | 21.9% |
| 2025-03-29 | $1.5B | $420.8M | $40.1M | $380.7M | 24.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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.
Free cash flow margin improvement
The free cash flow margin increased from the prior quarter, as the decline in capital expenditure was proportionally larger than the decline in revenue and operating cash flow.
This improvement occurred despite lower revenue and operating cash flow, highlighting a shift in capital allocation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, and operating cash flow also declined. Capital expenditure was significantly lower, resulting in free cash flow that was slightly lower than the prior quarter but at a higher margin relative to revenue.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, but free cash flow margin improved due to a sharper reduction in capital expenditure. Versus the same quarter one year earlier, revenue was higher, yet operating cash flow, free cash flow, and margin were all lower.
Monitor capital expenditure levels, as a sharp decline from the prior quarter contributed to the improved free cash flow margin.