Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined sharply in the current quarter compared to both the prior quarter and the year-ago quarter. The free cash flow margin contracted to a low level, reflecting a significant reduction in cash conversion efficiency.
- Revenue was relatively stable, but operating cash flow decreased substantially, leading to a much lower free cash flow. Capital expenditure was also lower, but the drop in operating cash flow was the primary factor in the weakened cash conversion.
- Compared to the prior quarter, revenue was slightly lower, operating cash flow and free cash flow were significantly lower, and the margin contracted. Versus the year-ago quarter, revenue was higher, but operating cash flow and free cash flow were lower, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$36.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$58.0M
Cash generated by operations before capital spending.
CapEx
$22.0M
Capital spending and related asset purchases.
FCF margin
0.9%
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 |
|---|---|---|---|---|---|
| 2024-06-28 | $4.1B | $381.0M | $23.0M | $358.0M | 8.7% |
| 2024-09-27 | $4.2B | $647.0M | $23.0M | $624.0M | 15.0% |
| 2025-01-03 | $4.3B | $294.0M | $86.0M | $208.0M | 4.8% |
| 2025-04-04 | $4.2B | $58.0M | $22.0M | $36.0M | 0.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 9.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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.
Sharp decline in operating cash flow
Operating cash flow dropped notably, falling below both the prior quarter and the year-ago quarter, despite relatively stable revenue.
This decline was the primary reason for the weakened free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was relatively stable, but operating cash flow decreased substantially, leading to a much lower free cash flow. Capital expenditure was also lower, but the drop in operating cash flow was the primary factor in the weakened cash conversion.
Compared to the prior quarter, revenue was slightly lower, operating cash flow and free cash flow were significantly lower, and the margin contracted. Versus the year-ago quarter, revenue was higher, but operating cash flow and free cash flow were lower, and the margin weakened.
Monitor changes in net receivables and inventory, which increased from the end of the prior fiscal year.