Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and operating cash flow declined sharply from both the prior quarter and the same quarter last year, despite revenue being higher year-over-year. The free cash flow margin weakened significantly, reflecting a much lower conversion of revenue into cash.
- Revenue was higher than the same quarter a year ago but lower than the preceding quarter. Operating cash flow and free cash flow were substantially lower than both comparison periods, resulting in a free cash flow margin that was much weaker than the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all lower, with free cash flow margin declining sharply. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$27.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$112.2M
Cash generated by operations before capital spending.
CapEx
$85.1M
Capital spending and related asset purchases.
FCF margin
1.0%
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 |
|---|---|---|---|---|---|
| 2024-09-29 | $3.0B | $695.3M | $128.0M | $567.3M | 19.0% |
| 2024-12-31 | $2.9B | $941.6M | $134.5M | $807.1M | 28.0% |
| 2025-03-30 | $2.8B | $396.7M | $145.5M | $251.2M | 9.0% |
| 2025-06-29 | $2.6B | $112.2M | $85.1M | $27.1M | 1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 43.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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.
Sharp decline in operating cash flow
Operating cash flow fell substantially from both the prior quarter and the year-ago period, while revenue was mixed—higher year-over-year but lower sequentially. This drove a much lower free cash flow and a weakened free cash flow margin.
The lower cash conversion resulted in a free cash flow margin that was minimal for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the same quarter a year ago but lower than the preceding quarter. Operating cash flow and free cash flow were substantially lower than both comparison periods, resulting in a free cash flow margin that was much weaker than the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all lower, with free cash flow margin declining sharply. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the pending acquisition of LesserEvil, LLC, which is expected to close by the end of the fiscal year and may affect future capital allocation and cash flows.