Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was similar to the prior quarter and higher than the same quarter last year. Operating cash flow and free cash flow improved substantially from the prior quarter and were also higher than the year-ago period, resulting in a meaningfully higher free cash flow margin.
- Operating cash flow, after deducting capital expenditure, generated free cash flow that represented a large share of revenue, yielding a notably higher free cash flow margin compared to both prior periods.
- Compared to the prior quarter, operating cash flow and free cash flow were markedly higher, while capital expenditure increased only slightly. Relative to the same quarter one year ago, both operating cash flow and free cash flow improved, and the free cash flow margin was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$457.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$486.0M
Cash generated by operations before capital spending.
CapEx
$29.0M
Capital spending and related asset purchases.
FCF margin
10.8%
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 |
|---|---|---|---|---|---|
| 2024-09-27 | $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% |
| 2025-07-04 | $4.2B | $486.0M | $29.0M | $457.0M | 10.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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 strength
Operating cash flow was the primary driver of free cash flow improvement, rising substantially from the prior quarter and also exceeding the year-ago level.
The higher operating cash flow significantly improved free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow, after deducting capital expenditure, generated free cash flow that represented a large share of revenue, yielding a notably higher free cash flow margin compared to both prior periods.
Compared to the prior quarter, operating cash flow and free cash flow were markedly higher, while capital expenditure increased only slightly. Relative to the same quarter one year ago, both operating cash flow and free cash flow improved, and the free cash flow margin was higher.
Monitor operating cash flow levels to assess whether the improvement from the prior quarter is sustained.