Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined from the prior quarter but improved compared to the same quarter last year. The margin weakened sequentially due to lower cash conversion despite higher revenue.
- Revenue edged higher relative to the prior quarter, but operating cash flow decreased substantially, resulting in lower free cash flow and margin. Capital expenditure increased slightly, partially offsetting cash generation.
- Compared to the prior quarter, revenue increased while operating cash flow and free cash flow both declined, leading to a lower margin. Versus the year-ago quarter, revenue, operating cash flow, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$185.1M
Capital spending and related asset purchases.
FCF margin
29.9%
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 |
|---|---|---|---|---|---|
| 2024-12-29 | $4.4B | $741.9M | $188.3M | $553.6M | 12.7% |
| 2025-03-30 | $4.7B | $1.3B | $288.1M | $1.0B | 21.6% |
| 2025-06-29 | $5.2B | $2.6B | $172.2M | $2.4B | 46.1% |
| 2025-09-28 | $5.3B | $1.8B | $185.1M | $1.6B | 29.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | 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 dropped notably from the previous quarter, while revenue rose only modestly. This divergence is the primary observable factor behind the weakened free cash flow margin.
If operating cash flow does not rebound, future free cash flow generation may remain pressured even with stable revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue edged higher relative to the prior quarter, but operating cash flow decreased substantially, resulting in lower free cash flow and margin. Capital expenditure increased slightly, partially offsetting cash generation.
Compared to the prior quarter, revenue increased while operating cash flow and free cash flow both declined, leading to a lower margin. Versus the year-ago quarter, revenue, operating cash flow, free cash flow, and margin all improved.
Monitor whether operating cash flow can sustain or recover from its sequential decline given the current revenue trajectory.