Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved significantly from the prior quarter, with free cash flow turning positive. Compared to the same quarter a year earlier, free cash flow was lower despite slightly higher revenue.
- Revenue increased from the prior quarter, operating cash flow turned positive, and capital expenditure was slightly higher, resulting in positive free cash flow and a positive margin.
- Compared to the prior quarter, all metrics improved. Compared to the same quarter a year earlier, revenue was slightly higher but operating cash flow and free cash flow were lower, leading to a lower margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$552.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$640.0M
Cash generated by operations before capital spending.
CapEx
$88.0M
Capital spending and related asset purchases.
FCF margin
10.2%
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 | $5.3B | $780.0M | $78.0M | $702.0M | 13.3% |
| 2025-01-03 | $21.3B | $1.1B | $118.0M | $1.0B | 4.7% |
| 2025-03-28 | $5.1B | -$42.0M | $59.0M | -$101.0M | -2.0% |
| 2025-06-27 | $5.4B | $640.0M | $88.0M | $552.0M | 10.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 120.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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 recovery
Operating cash flow swung from negative in the prior quarter to positive in the current quarter, driving free cash flow positive.
This recovery was the primary factor in the quarter's cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, operating cash flow turned positive, and capital expenditure was slightly higher, resulting in positive free cash flow and a positive margin.
Compared to the prior quarter, all metrics improved. Compared to the same quarter a year earlier, revenue was slightly higher but operating cash flow and free cash flow were lower, leading to a lower margin.
Monitor the impact of revenue recognized from performance obligations satisfied in prior periods, as noted in the filing.