Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow increased sequentially, supported by a sharp rise in operating cash flow, though free cash flow margin remained below the year-ago level. Capital expenditure rose significantly compared to both prior periods.
- Revenue grew while operating cash flow expanded even more, leading to an improved free cash flow margin relative to the prior quarter. Capital expenditure consumed a larger share of operating cash flow than a year ago, reducing conversion efficiency.
- Compared to the prior quarter, all cash flow metrics improved, with free cash flow significantly higher. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$288.1M
Capital spending and related asset purchases.
FCF margin
21.6%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $3.9B | $862.4M | $100.7M | $761.7M | 19.7% |
| 2024-09-29 | $4.2B | $1.6B | $110.6M | $1.5B | 35.0% |
| 2024-12-29 | $4.4B | $741.9M | $188.3M | $553.6M | 12.7% |
| 2025-03-30 | $4.7B | $1.3B | $288.1M | $1.0B | 21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 76.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | 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 rebound
Operating cash flow rose sharply from the prior quarter, more than offsetting higher capital expenditure and driving a substantial increase in free cash flow. This improvement was the primary factor behind the sequential margin expansion.
The higher operating cash flow provided the majority of the sequential free cash flow growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew while operating cash flow expanded even more, leading to an improved free cash flow margin relative to the prior quarter. Capital expenditure consumed a larger share of operating cash flow than a year ago, reducing conversion efficiency.
Compared to the prior quarter, all cash flow metrics improved, with free cash flow significantly higher. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
Monitor the growth in accounts receivable and inventory, which were notable uses of cash during the nine-month period, as continued increases could pressure operating cash flow.