Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow rose sharply as operating cash flow increased while revenue held steady sequentially. The free cash flow margin improved notably compared with both the prior quarter and the same quarter last year.
- Revenue was stable sequentially, but operating cash flow increased substantially, driving free cash flow and the free cash flow margin higher. Capital expenditure also rose, though the impact was more than offset by the strength in operating cash flow.
- Compared to the prior quarter, free cash flow and its margin were significantly higher, aided by a surge in operating cash flow. Versus the same quarter a year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, with the margin improving notably.
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
$425.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$485.6M
Cash generated by operations before capital spending.
CapEx
$60.5M
Capital spending and related asset purchases.
FCF margin
24.0%
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 |
|---|---|---|---|---|---|
| 2024-12-28 | $1.8B | $483.9M | $84.7M | $399.2M | 21.9% |
| 2025-03-29 | $1.5B | $420.8M | $40.1M | $380.7M | 24.8% |
| 2025-06-28 | $1.8B | $173.2M | $45.7M | $127.5M | 7.0% |
| 2025-09-27 | $1.8B | $485.6M | $60.5M | $425.1M | 24.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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.
Strong Operating Cash Flow Conversion
Operating cash flow rose substantially while revenue remained stable sequentially, resulting in a much higher free cash flow margin. The filing notes the company primarily uses cash from operations to fund capital expenditures, working capital, dividends, share repurchases, and strategic acquisitions.
The free cash flow margin improved markedly compared to both the prior quarter and the same quarter a year earlier.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially, but operating cash flow increased substantially, driving free cash flow and the free cash flow margin higher. Capital expenditure also rose, though the impact was more than offset by the strength in operating cash flow.
Compared to the prior quarter, free cash flow and its margin were significantly higher, aided by a surge in operating cash flow. Versus the same quarter a year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, with the margin improving notably.
Monitor whether operating cash flow can sustain at this elevated level relative to steady revenue in future quarters.