Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue in the current quarter was lower than the preceding quarter but higher than the same quarter one year earlier. Operating cash flow increased from the prior quarter, leading to higher free cash flow and an improved free cash flow margin, though both remained below the year-ago levels.
- The company converted revenue into operating cash flow at a rate that, after deducting capital expenditure, yielded a free cash flow margin that improved sequentially but weakened compared to the same quarter last year.
- Compared to the preceding quarter, free cash flow was higher, driven by stronger operating cash flow despite a slight decline in revenue. Versus the same quarter one year earlier, free cash flow was lower, as operating cash flow decreased and capital expenditure increased.
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
$788.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$926.6M
Cash generated by operations before capital spending.
CapEx
$138.1M
Capital spending and related asset purchases.
FCF margin
25.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-09-28 | $3.2B | $841.9M | $85.9M | $756.0M | 23.8% |
| 2025-12-31 | $3.1B | $926.6M | $138.1M | $788.5M | 25.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 246.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | 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 Growth
Operating cash flow rose from the prior quarter, more than offsetting the increase in capital expenditure and the decline in revenue.
This improvement was the primary factor behind the sequential increase in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted revenue into operating cash flow at a rate that, after deducting capital expenditure, yielded a free cash flow margin that improved sequentially but weakened compared to the same quarter last year.
Compared to the preceding quarter, free cash flow was higher, driven by stronger operating cash flow despite a slight decline in revenue. Versus the same quarter one year earlier, free cash flow was lower, as operating cash flow decreased and capital expenditure increased.
Capital expenditure was higher than both the prior quarter and the year-ago period, a trend worth monitoring for its effect on future free cash flow.