Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved sequentially to a strong level, supported by higher operating cash flow and lower capital expenditure. Compared to the same quarter last year, free cash flow also increased despite slightly lower operating cash flow.
- Revenue remained stable sequentially while operating cash flow rose markedly, driving free cash flow substantially higher. Capital expenditure was slightly higher than the prior quarter but still below the year-ago level, contributing to the improved free cash flow margin.
- Compared to the immediate prior quarter, operating cash flow and free cash flow were sharply higher, lifting the free cash flow margin. Versus the same quarter a year earlier, operating cash flow was slightly lower, but free cash flow improved due to lower capital expenditure.
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
$744.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$854.0M
Cash generated by operations before capital spending.
CapEx
$110.0M
Capital spending and related asset purchases.
FCF margin
19.7%
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 | $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% |
| 2025-12-28 | $3.8B | $854.0M | $110.0M | $744.0M | 19.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 225.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | 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 Surge
The sharp sequential increase in operating cash flow was the strongest observable driver, far outpacing the modest change in revenue and capital expenditure. This lifted free cash flow and the associated margin well above the prior-quarter figures.
Higher operating cash flow directly improved free cash flow generation and margin, reversing the weaker performance seen in the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable sequentially while operating cash flow rose markedly, driving free cash flow substantially higher. Capital expenditure was slightly higher than the prior quarter but still below the year-ago level, contributing to the improved free cash flow margin.
Compared to the immediate prior quarter, operating cash flow and free cash flow were sharply higher, lifting the free cash flow margin. Versus the same quarter a year earlier, operating cash flow was slightly lower, but free cash flow improved due to lower capital expenditure.
Monitor the sustainability of operating cash flow at the elevated fourth-quarter level relative to both the prior and year-ago periods.