Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher and cash conversion improved compared to both the preceding quarter and the year-ago period. Free cash flow margin strengthened as operating cash flow rose and capital expenditure declined.
- Operating cash flow as a proportion of revenue increased, and after lower capital expenditure, free cash flow margin expanded. The conversion of revenue into free cash flow was stronger.
- Revenue was higher than the immediately preceding quarter and the same quarter one year earlier. Operating cash flow and free cash flow were higher, while capital expenditure was lower than the prior quarter but slightly higher than a year ago.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$819.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$318.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$341.4M
Cash generated by operations before capital spending.
CapEx
$22.5M
Capital spending and related asset purchases.
FCF margin
26.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $1.2B | $341.4M | $22.5M | $318.9M | 26.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 508.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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.
Sequential revenue growth and inventory reduction
The company reported an improvement in its overall business, with sequential net sales growth in mixed-signal microcontroller and analog product lines, and continued inventory reduction as part of its recovery plan. These trends were associated with higher operating cash flow.
The rise in operating cash flow was the main factor behind the increase in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue increased, and after lower capital expenditure, free cash flow margin expanded. The conversion of revenue into free cash flow was stronger.
Revenue was higher than the immediately preceding quarter and the same quarter one year earlier. Operating cash flow and free cash flow were higher, while capital expenditure was lower than the prior quarter but slightly higher than a year ago.
Monitor the sustainability of operating cash flow improvement and the company's inventory reduction efforts.