Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared with both the prior quarter and the same quarter last year. The free cash flow margin turned positive, reflecting stronger cash generation relative to sales.
- Operating cash flow as a proportion of revenue was higher than both the preceding quarter and the year-ago quarter, while capital expenditure declined sequentially. This combination resulted in positive free cash flow and an improved free cash flow margin.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and capital expenditure was lower, yielding a significant sequential improvement in free cash flow margin from near zero to positive. Versus the same quarter one year earlier, all metrics improved, especially free cash flow, which reversed from a negative to a positive figure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$532.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$225.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$886.0M
Cash generated by operations before capital spending.
CapEx
$661.0M
Capital spending and related asset purchases.
FCF margin
2.4%
The share of revenue converted into free cash flow.
TTM FCF yield
1.0%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $886.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $661.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $225.0M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-07-02 | $11.8B | $2.3B | $521.1M | $1.7B | 14.8% |
| 2022-10-01 | $10.5B | $2.8B | $461.3M | $2.3B | 22.3% |
| 2022-12-31 | $8.7B | $2.5B | $517.9M | $2.0B | 23.1% |
| 2023-04-01 | $8.7B | $1.2B | $531.7M | $675.4M | 7.8% |
| 2023-07-01 | $9.5B | $1.9B | $525.4M | $1.4B | 14.6% |
| 2023-09-30 | $8.8B | $2.5B | $439.2M | $2.0B | 23.1% |
| 2023-12-31 | $7.7B | $1.5B | $717.8M | $802.6M | 10.4% |
| 2024-03-30 | $8.1B | $460.0M | $670.0M | -$210.0M | -2.6% |
| 2024-06-29 | $8.1B | $1.5B | $801.0M | $684.0M | 8.5% |
| 2024-09-28 | $7.4B | $1.3B | $823.0M | $478.0M | 6.4% |
| 2024-12-31 | $7.1B | $733.0M | $879.0M | -$146.0M | -2.1% |
| 2025-04-05 | $7.8B | $364.0M | $859.0M | -$495.0M | -6.3% |
| 2025-07-05 | $8.5B | $732.0M | $954.0M | -$222.0M | -2.6% |
| 2025-10-04 | $8.5B | $1.3B | $807.0M | $532.0M | 6.2% |
| 2025-12-31 | $7.7B | $799.0M | $802.0M | -$3.0M | -0.0% |
| 2026-04-04 | $9.5B | $886.0M | $661.0M | $225.0M | 2.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 30.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.0% | 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.
Stronger Operating Cash Flow
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter. According to the filing, the year-over-year increase was driven by net earnings before noncontrolling interests.
Higher operating cash flow directly enabled positive free cash flow despite a moderate capital expenditure level.
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 was higher than both the preceding quarter and the year-ago quarter, while capital expenditure declined sequentially. This combination resulted in positive free cash flow and an improved free cash flow margin.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and capital expenditure was lower, yielding a significant sequential improvement in free cash flow margin from near zero to positive. Versus the same quarter one year earlier, all metrics improved, especially free cash flow, which reversed from a negative to a positive figure.
Monitor whether capital expenditure remains lower in subsequent periods, as it was a key factor in the current quarter's positive free cash flow.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $53.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 1.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |