HS
HSY
Sep 28, 2025
Quarter ended Sep 28, 2025 · FY2025 Q3

The Hershey Company stock research

The Hershey (HSY) Free Cash Flow — Quarter Ended Sep 28, 2025

Free cash flow margin improved compared to both the prior quarter and the same quarter last year. Operating cash flow was higher while capital expenditure was lower relative to the year-ago period.

Free cash flow takeaway

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

Free cash flow margin improved compared to both the prior quarter and the same quarter last year. Operating cash flow was higher while capital expenditure was lower relative to the year-ago period.

  • Revenue was higher than the prior quarter, and operating cash flow increased substantially, resulting in a higher free cash flow and an improved free cash flow margin. Capital expenditure remained relatively stable.
  • Compared to the immediately preceding quarter, free cash flow and its margin were significantly higher, driven by a much higher operating cash flow. Versus the same quarter one year earlier, free cash flow and margin also improved, with operating cash flow higher and capital expenditure lower.

FCF snapshot

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

TTM free cash flow

$1.8B

Trailing twelve-month free cash flow.

Quarter free cash flow

$756.0M

Free cash flow in the selected fiscal quarter.

Operating cash flow

$841.9M

Cash generated by operations before capital spending.

CapEx

$85.9M

Capital spending and related asset purchases.

FCF margin

23.8%

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.

PeriodRevenueOperating CFCapExFCFFCF margin
2024-12-31$2.9B$941.6M$134.5M$807.1M28.0%
2025-03-30$2.8B$396.7M$145.5M$251.2M9.0%
2025-06-29$2.6B$112.2M$85.1M$27.1M1.0%
2025-09-28$3.2B$841.9M$85.9M$756.0M23.8%

Cash conversion quality

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

FCF / net income273.6%Shows whether accounting earnings convert into cash.
CapEx / revenue2.7%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

Operating Cash Flow Strength

Operating cash flow was higher than both the prior quarter and the year-ago quarter, contributing to a substantial increase in free cash flow.

The improved operating cash flow was the strongest observable driver of the quarter's free cash flow margin expansion.

What the cash flow says

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

Revenue was higher than the prior quarter, and operating cash flow increased substantially, resulting in a higher free cash flow and an improved free cash flow margin. Capital expenditure remained relatively stable.

Compared to the immediately preceding quarter, free cash flow and its margin were significantly higher, driven by a much higher operating cash flow. Versus the same quarter one year earlier, free cash flow and margin also improved, with operating cash flow higher and capital expenditure lower.

Monitor the trend in operating cash flow relative to revenue, as it was the primary factor in the quarter's cash conversion improvement.