Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened sharply from the prior quarter but improved versus the same quarter last year. Revenue was stable sequentially while operating cash flow declined and capital expenditure increased.
- Operating cash flow converted into free cash flow after capital expenditure, resulting in a free cash flow margin lower than the prior quarter but higher than a year ago. Revenue remained flat sequentially, and the margin compression was driven primarily by both lower operating cash flow and higher capital spending.
- Compared to the immediately preceding quarter, free cash flow and its margin were lower, with operating cash flow declining and capital expenditure rising. Relative to the same quarter one year earlier, free cash flow and its margin were higher, supported by improved operating cash flow despite higher capital spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$754.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$51.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$88.1M
Cash generated by operations before capital spending.
CapEx
$36.5M
Capital spending and related asset purchases.
FCF margin
4.5%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $1.0B | $271.5M | $18.1M | $253.4M | 24.7% |
| 2025-03-31 | $970.5M | $205.9M | $14.2M | $191.7M | 19.8% |
| 2025-06-30 | $1.1B | $275.6M | $17.9M | $257.7M | 24.0% |
| 2025-09-30 | $1.1B | $88.1M | $36.5M | $51.6M | 4.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 123.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.1B | 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 fell meaningfully from the prior quarter while revenue was unchanged, suggesting a shift in working capital or other cash components. The filing context notes a continued reduction in inventory and paused factory expansion, which may influence cash generation.
This decline was the primary factor behind the sharp reduction in free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted into free cash flow after capital expenditure, resulting in a free cash flow margin lower than the prior quarter but higher than a year ago. Revenue remained flat sequentially, and the margin compression was driven primarily by both lower operating cash flow and higher capital spending.
Compared to the immediately preceding quarter, free cash flow and its margin were lower, with operating cash flow declining and capital expenditure rising. Relative to the same quarter one year earlier, free cash flow and its margin were higher, supported by improved operating cash flow despite higher capital spending.
Monitor the trajectory of operating cash flow as it declined sequentially despite stable revenue.