Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened compared to both the prior quarter and the same quarter last year, as operating cash flow declined while revenue increased from the prior quarter. The company’s liquidity position remained supported by cash from operations and available credit facilities, as described in the filing.
- Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow decreased significantly from both periods, leading to lower free cash flow despite reduced capital expenditure. The free cash flow margin contracted.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by a larger decline in operating cash flow relative to the increase in revenue. Versus the same quarter one year earlier, free cash flow and margin also decreased, though capital expenditure was substantially lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$508.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$585.0M
Cash generated by operations before capital spending.
CapEx
$77.0M
Capital spending and related asset purchases.
FCF margin
16.0%
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 | $3.1B | $391.0M | $130.0M | $261.0M | 8.4% |
| 2025-03-30 | $2.8B | $565.0M | $139.0M | $426.0M | 15.0% |
| 2025-06-29 | $2.9B | $779.0M | $83.0M | $696.0M | 23.8% |
| 2025-09-28 | $3.2B | $585.0M | $77.0M | $508.0M | 16.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 80.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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.
Operating Cash Flow Decline
Operating cash flow decreased from both the prior quarter and the year-ago quarter, while revenue showed mixed trends. This decline directly reduced free cash flow and margin, making cash conversion less efficient.
The decline in operating cash flow was the primary factor behind the weakened free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow decreased significantly from both periods, leading to lower free cash flow despite reduced capital expenditure. The free cash flow margin contracted.
Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by a larger decline in operating cash flow relative to the increase in revenue. Versus the same quarter one year earlier, free cash flow and margin also decreased, though capital expenditure was substantially lower.
Monitor the trajectory of operating cash flow, as it declined notably from both comparison periods despite revenue changes.