Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior year quarter, but operating cash flow improved significantly, leading to a higher free cash flow margin. Compared to the preceding quarter, both operating cash flow and free cash flow strengthened, while capital expenditure decreased.
- Operating cash flow as a proportion of revenue improved versus both the prior quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter but similar to the year-ago quarter. The resulting free cash flow margin was higher than both comparison periods.
- Compared to the preceding quarter, revenue was slightly higher, operating cash flow and free cash flow were substantially higher, and capital expenditure was lower. Versus the same quarter one year earlier, revenue was slightly lower, but operating cash flow and free cash flow were higher, with capital expenditure remaining stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$533.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$621.0M
Cash generated by operations before capital spending.
CapEx
$88.0M
Capital spending and related asset purchases.
FCF margin
13.9%
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 | $3.9B | $249.0M | $59.0M | $190.0M | 4.9% |
| 2024-12-29 | $3.7B | $793.0M | $132.0M | $661.0M | 18.1% |
| 2025-03-30 | $3.7B | $428.0M | $179.0M | $249.0M | 6.7% |
| 2025-06-29 | $3.8B | $621.0M | $88.0M | $533.0M | 13.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | 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.
Operating Cash Flow Improvement
Operating cash flow increased significantly compared to both the prior quarter and the year-ago quarter, driving a higher free cash flow margin. The filing context attributes the year-over-year increase in operating cash flow primarily to net changes in working capital balances, including the timing of payments and sales relative to collections.
The improvement in operating cash flow was the strongest observable driver of the higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue improved versus both the prior quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter but similar to the year-ago quarter. The resulting free cash flow margin was higher than both comparison periods.
Compared to the preceding quarter, revenue was slightly higher, operating cash flow and free cash flow were substantially higher, and capital expenditure was lower. Versus the same quarter one year earlier, revenue was slightly lower, but operating cash flow and free cash flow were higher, with capital expenditure remaining stable.
Monitor the trend in capital expenditure, which decreased from the prior quarter but remained near the year-ago level.