GR
GRMN
Dec 27, 2025
Quarter ended Dec 27, 2025 · FY2025 Q4

Garmin Ltd. stock research

Garmin (GRMN) Free Cash Flow — Quarter Ended Dec 27, 2025

Free cash flow increased compared to both the prior quarter and the same quarter last year, supported by higher revenue and operating cash flow. The free cash flow margin narrowed as capital expenditure grew more quickly than revenue.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Free cash flow increased compared to both the prior quarter and the same quarter last year, supported by higher revenue and operating cash flow. The free cash flow margin narrowed as capital expenditure grew more quickly than revenue.

  • Revenue and operating cash flow improved, while capital expenditure also rose, leading to a modest increase in free cash flow. The margin declined due to the higher investment spending.
  • Revenue and operating cash flow were higher than both the prior quarter and the same quarter last year. Free cash flow was also higher than both periods, but the free cash flow margin weakened relative to each.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

$1.4B

Trailing twelve-month free cash flow.

Quarter free cash flow

$429.6M

Free cash flow in the selected fiscal quarter.

Operating cash flow

$553.8M

Cash generated by operations before capital spending.

CapEx

$124.2M

Capital spending and related asset purchases.

FCF margin

20.2%

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.

PeriodRevenueOperating CFCapExFCFFCF margin
2025-03-29$1.5B$420.8M$40.1M$380.7M24.8%
2025-06-28$1.8B$173.2M$45.7M$127.5M7.0%
2025-09-27$1.8B$485.6M$60.5M$425.1M24.0%
2025-12-27$2.1B$553.8M$124.2M$429.6M20.2%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income81.3%Shows whether accounting earnings convert into cash.
CapEx / revenue5.8%Lower capital intensity usually supports FCF margin.
Net cashn/aCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Supportive

Revenue expansion

Revenue rose compared to the prior quarter and the same quarter last year, driving higher operating cash flow. The company’s filing notes that operating cash flow is used to fund capital expenditures and other needs, with adequate cash resources.

Free cash flow increased even as capital expenditure rose, reflecting strong underlying cash generation.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Revenue and operating cash flow improved, while capital expenditure also rose, leading to a modest increase in free cash flow. The margin declined due to the higher investment spending.

Revenue and operating cash flow were higher than both the prior quarter and the same quarter last year. Free cash flow was also higher than both periods, but the free cash flow margin weakened relative to each.

Monitor the trajectory of capital expenditure relative to operating cash flow, as the increased investment reduced the free cash flow margin.

GRMN Free Cash Flow — Quarter Ended Dec 27, 2025