Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened sequentially as operating cash flow fell sharply despite unchanged revenue, but improved compared with the same quarter last year. Free cash flow margin declined from the prior quarter while remaining slightly above the year-ago level.
- Revenue was unchanged from the previous quarter, but operating cash flow was lower, leading to a reduction in free cash flow. Capital expenditure was slightly higher, further weighing on free cash flow, and the free cash flow margin decreased accordingly.
- Compared with the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared with the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin were all higher.
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
$196.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$294.0M
Cash generated by operations before capital spending.
CapEx
$98.0M
Capital spending and related asset purchases.
FCF margin
5.2%
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 |
|---|---|---|---|---|---|
| 2024-12-29 | $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% |
| 2025-09-28 | $3.8B | $294.0M | $98.0M | $196.0M | 5.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 49.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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 volatility
The sequential decline in free cash flow was primarily driven by a lower operating cash flow, while capital expenditure increased slightly. The filing notes that working capital changes contributed to operating cash flow movements over the nine-month period.
The reduction in operating cash flow was the primary factor behind the lower free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the previous quarter, but operating cash flow was lower, leading to a reduction in free cash flow. Capital expenditure was slightly higher, further weighing on free cash flow, and the free cash flow margin decreased accordingly.
Compared with the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared with the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor operating cash flow trends in upcoming quarters given the sequential decline.