Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sequentially as revenue growth combined with higher operating cash flow to lift free cash flow and margin. Compared with a year earlier, free cash flow weakened despite slightly higher revenue, reflecting a lower operating cash flow conversion.
- Revenue increased relative to both the prior quarter and the year-ago period. Operating cash flow rose sharply from the previous quarter, supporting a notable expansion in free cash flow and margin. Capital expenditure was stable across all three periods.
- Versus the prior quarter, free cash flow margin improved, driven by higher operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow declined despite comparable revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$403.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$141.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$174.0M
Cash generated by operations before capital spending.
CapEx
$33.0M
Capital spending and related asset purchases.
FCF margin
4.2%
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.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-12-28 | $3.2B | $204.0M | $36.0M | $168.0M | 5.3% |
| 2025-03-29 | $3.2B | $37.0M | $31.0M | $6.0M | 0.2% |
| 2025-06-28 | $3.2B | $120.0M | $32.0M | $88.0M | 2.7% |
| 2025-09-27 | $3.3B | $174.0M | $33.0M | $141.0M | 4.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 139.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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.
Operating cash flow improvement
Operating cash flow rose sequentially, substantially increasing free cash flow and margin. The filing notes that working capital requirements are influenced by sales, inventory forward-buy opportunities, and payment terms.
The sequential improvement in operating cash flow was the strongest observable positive driver for free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased relative to both the prior quarter and the year-ago period. Operating cash flow rose sharply from the previous quarter, supporting a notable expansion in free cash flow and margin. Capital expenditure was stable across all three periods.
Versus the prior quarter, free cash flow margin improved, driven by higher operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow declined despite comparable revenue.
Monitor the trajectory of operating cash flow relative to revenue, as a year-over-year decline in conversion was the primary factor behind the weaker free cash flow.