Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year but weakened from the prior quarter. Operating cash flow was the primary driver of the sequential decline.
- Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow decreased from the prior quarter but increased from the year-ago quarter, while capital expenditure was lower than the year-ago quarter but higher than the prior quarter. Free cash flow margin weakened sequentially but improved year-over-year.
- Compared to the prior quarter, free cash flow and free cash flow margin were lower, driven by lower operating cash flow. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher, supported by higher operating cash flow and lower capital expenditure.
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
$452.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$495.0M
Cash generated by operations before capital spending.
CapEx
$43.0M
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-10-03 | $4.4B | $711.0M | $31.0M | $680.0M | 15.3% |
| 2026-01-02 | $4.2B | $495.0M | $43.0M | $452.0M | 10.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 138.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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 Decline
Operating cash flow decreased from the prior quarter, which was the strongest observable driver of the sequential decline in free cash flow. The year-over-year improvement in operating cash flow was the main factor behind the higher free cash flow compared to the same quarter last year.
The sequential drop in operating cash flow directly reduced free cash flow and margin from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow decreased from the prior quarter but increased from the year-ago quarter, while capital expenditure was lower than the year-ago quarter but higher than the prior quarter. Free cash flow margin weakened sequentially but improved year-over-year.
Compared to the prior quarter, free cash flow and free cash flow margin were lower, driven by lower operating cash flow. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher, supported by higher operating cash flow and lower capital expenditure.
Monitor the trend in operating cash flow, as it declined sequentially despite a smaller revenue base.