Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved significantly compared to the same quarter last year, but weakened from the prior quarter. Revenue was stable sequentially while operating cash flow decreased, and capital expenditure rose.
- Revenue was unchanged from the prior quarter, but operating cash flow was lower, leading to a lower free cash flow margin. Compared to the same quarter last year, revenue was higher and operating cash flow increased substantially, yielding a higher free cash flow margin.
- Sequentially, free cash flow and margin were lower due to a decline in operating cash flow and an increase in capital expenditure. Year-over-year, free cash flow and margin were higher, driven by a rise in operating cash flow that outweighed a modest increase in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$260.9M
Capital spending and related asset purchases.
FCF margin
22.8%
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 |
|---|---|---|---|---|---|
| 2025-03-30 | $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% |
| 2025-12-28 | $5.3B | $1.5B | $260.9M | $1.2B | 22.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 76.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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.
Year-over-year operating cash flow growth
Operating cash flow rose substantially compared to the same quarter last year, reflecting improved cash generation from operations. This was the primary factor behind the higher free cash flow and margin year-over-year.
The higher operating cash flow enabled a larger free cash flow despite increased capital expenditure, strengthening the company's cash position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, but operating cash flow was lower, leading to a lower free cash flow margin. Compared to the same quarter last year, revenue was higher and operating cash flow increased substantially, yielding a higher free cash flow margin.
Sequentially, free cash flow and margin were lower due to a decline in operating cash flow and an increase in capital expenditure. Year-over-year, free cash flow and margin were higher, driven by a rise in operating cash flow that outweighed a modest increase in capital expenditure.
Monitor capital expenditure, as it increased both sequentially and year-over-year, affecting free cash flow conversion.