Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved compared to both the prior quarter and the same quarter last year, driven by stable operating cash flow and lower capital spending relative to the prior quarter. Revenue was lower than the preceding quarter but higher than a year ago.
- Operating cash flow remained near the prior quarter's level and was higher than a year ago, while capital expenditure declined sharply from the prior quarter. This combination lifted free cash flow and the free cash flow margin above both comparison periods.
- Compared to the prior quarter, free cash flow and margin improved as capital spending fell more than the drop in operating cash flow. Versus the same quarter last year, free cash flow and margin also improved, supported by higher operating cash flow even though capital spending increased.
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
$469.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$536.0M
Cash generated by operations before capital spending.
CapEx
$66.6M
Capital spending and related asset purchases.
FCF margin
26.8%
The share of revenue converted into free cash flow.
TTM FCF yield
3.1%
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 |
|---|---|---|---|---|---|
| 2025-06-28 | $1.8B | $173.2M | $45.7M | $127.5M | 7.0% |
| 2025-09-27 | $1.8B | $485.6M | $60.5M | $425.1M | 24.0% |
| 2025-12-27 | $2.1B | $553.8M | $124.2M | $429.6M | 20.2% |
| 2026-03-28 | $1.8B | $536.0M | $66.6M | $469.4M | 26.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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.
Capital spending reduction
Capital expenditure in the current quarter was markedly lower than in the immediately preceding quarter, while operating cash flow stayed nearly steady. This drove a notable improvement in free cash flow and margin even though revenue declined sequentially.
The lower capital outlay directly boosted free cash flow and margin, making it the strongest observable factor in the quarter's cash conversion performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow remained near the prior quarter's level and was higher than a year ago, while capital expenditure declined sharply from the prior quarter. This combination lifted free cash flow and the free cash flow margin above both comparison periods.
Compared to the prior quarter, free cash flow and margin improved as capital spending fell more than the drop in operating cash flow. Versus the same quarter last year, free cash flow and margin also improved, supported by higher operating cash flow even though capital spending increased.
Monitor whether capital expenditure remains at the reduced level seen this quarter or reverts toward the prior quarter's higher amount.
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 | $47.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.1% | 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.