Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the year-ago period. However, operating cash flow declined sharply from the prior quarter, resulting in lower free cash flow and a narrower margin, though both metrics improved relative to the year-ago quarter.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, while capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter. The free cash flow margin weakened from the prior quarter but improved from the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow was lower, driven by a significant decline in operating cash flow despite higher revenue and a modest increase in capital expenditure. Compared to the same quarter one year earlier, free cash flow was higher, supported by higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$225.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$273.0M
Cash generated by operations before capital spending.
CapEx
$48.0M
Capital spending and related asset purchases.
FCF margin
8.1%
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 |
|---|---|---|---|---|---|
| 2024-09-28 | $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% |
| 2025-06-28 | $2.8B | $273.0M | $48.0M | $225.0M | 8.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 43.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Decline in operating cash flow
Operating cash flow decreased from the prior quarter despite higher revenue, leading to a materially lower free cash flow margin. This was the most significant factor affecting cash conversion in the current quarter.
The reduction in operating cash flow caused free cash flow to fall substantially from the prior quarter, reversing the strong margin seen then.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, while capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter. The free cash flow margin weakened from the prior quarter but improved from the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow was lower, driven by a significant decline in operating cash flow despite higher revenue and a modest increase in capital expenditure. Compared to the same quarter one year earlier, free cash flow was higher, supported by higher operating cash flow and lower capital expenditure.
Monitor the trend in cash used for acquisitions and investments, as the company noted higher outflows in the first half of the fiscal year compared to the prior year.