Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus the same quarter last year, driven by higher operating cash flow. Compared to the prior quarter, free cash flow declined as operating cash flow decreased.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased significantly year over year but fell from the prior quarter, resulting in a free cash flow margin that improved versus last year but weakened sequentially.
- Compared to the prior quarter, free cash flow and free cash flow margin were lower, driven by a decline in operating cash flow despite a slight reduction in capital expenditure. Versus the same quarter last year, free cash flow and margin were substantially higher, with operating cash flow more than offsetting a modest increase in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$270.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$301.0M
Cash generated by operations before capital spending.
CapEx
$31.0M
Capital spending and related asset purchases.
FCF margin
6.2%
The share of revenue converted into free cash flow.
TTM FCF yield
13.6%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-07-04 | $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% |
| 2026-04-03 | $4.4B | $301.0M | $31.0M | $270.0M | 6.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 82.3% | 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 Improvement
Operating cash flow increased substantially compared to the same quarter last year, which was the primary factor behind the year-over-year improvement in free cash flow.
This drove a significant year-over-year increase in free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased significantly year over year but fell from the prior quarter, resulting in a free cash flow margin that improved versus last year but weakened sequentially.
Compared to the prior quarter, free cash flow and free cash flow margin were lower, driven by a decline in operating cash flow despite a slight reduction in capital expenditure. Versus the same quarter last year, free cash flow and margin were substantially higher, with operating cash flow more than offsetting a modest increase in capital expenditure.
Monitor the trend in operating cash flow, as it declined from the prior quarter despite higher revenue.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $13.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | 13.6% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.