Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow improved compared to the same quarter last year but declined from the preceding quarter. The margin strengthened year over year while weakening sequentially.
- Revenue was higher than the same quarter last year but lower than the prior quarter. Operating cash flow followed a similar pattern, leading to free cash flow that was higher than the year-ago level but lower than the previous quarter. The free cash flow margin reflected these movements.
- Year over year, operating cash flow and free cash flow both improved, with the margin increasing. Sequentially, all metrics declined from the prior quarter, which had a substantially higher margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$473.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$510.0M
Cash generated by operations before capital spending.
CapEx
$37.0M
Capital spending and related asset purchases.
FCF margin
18.7%
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 |
|---|---|---|---|---|---|
| 2024-06-29 | $2.6B | $180.0M | $68.0M | $112.0M | 4.3% |
| 2024-09-28 | $2.8B | $759.0M | $57.0M | $702.0M | 25.2% |
| 2024-12-31 | $3.0B | $1.1B | $86.0M | $984.0M | 32.7% |
| 2025-03-29 | $2.5B | $510.0M | $37.0M | $473.0M | 18.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 110.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.4B | 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 increase
Operating cash flow rose year over year, aided by higher earnings and improved working capital according to the filing. This was the primary factor behind the free cash flow improvement.
The stronger operating cash flow more than offset a modest increase in revenue, resulting in a higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the same quarter last year but lower than the prior quarter. Operating cash flow followed a similar pattern, leading to free cash flow that was higher than the year-ago level but lower than the previous quarter. The free cash flow margin reflected these movements.
Year over year, operating cash flow and free cash flow both improved, with the margin increasing. Sequentially, all metrics declined from the prior quarter, which had a substantially higher margin.
Monitor the trajectory of operating cash flow, as it declined from the prior quarter despite the year-over-year gain.