Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply this quarter as operating cash flow rose more than revenue, lifting free cash flow and margin. Both quarter-over-quarter and year-over-year comparisons show strengthened free cash flow generation.
- Revenue increased while operating cash flow grew substantially, driving free cash flow higher and expanding free cash flow margin. Capital expenditure remained stable relative to the scale of cash flow.
- Compared to the prior quarter, free cash flow margin improved from a lower level to a higher level. Against the same quarter last year, free cash flow margin also improved from a lower to a higher level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$680.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$260.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$280.6M
Cash generated by operations before capital spending.
CapEx
$19.7M
Capital spending and related asset purchases.
FCF margin
18.8%
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 |
|---|---|---|---|---|---|
| 2024-12-29 | $1.1B | $259.8M | $19.3M | $240.5M | 21.8% |
| 2025-03-30 | $887.1M | $138.1M | $13.8M | $124.3M | 14.0% |
| 2025-06-29 | $980.8M | $71.3M | $16.1M | $55.2M | 5.6% |
| 2025-09-28 | $1.4B | $280.6M | $19.7M | $260.9M | 18.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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
Operating cash flow rose significantly from both the prior quarter and the same quarter last year, far outpacing the increase in revenue. This was the strongest observable driver of free cash flow improvement.
The higher operating cash flow directly lifted free cash flow and margin to elevated levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow grew substantially, driving free cash flow higher and expanding free cash flow margin. Capital expenditure remained stable relative to the scale of cash flow.
Compared to the prior quarter, free cash flow margin improved from a lower level to a higher level. Against the same quarter last year, free cash flow margin also improved from a lower to a higher level.
Monitor the stability of operating cash flow, which drove the large margin expansion this quarter.