Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow improved year-over-year, though they weakened sequentially, resulting in a free cash flow margin that was higher than a year ago but lower than the previous quarter.
- Operating cash flow as a share of revenue, after deducting capital expenditure, produced a free cash flow margin that was higher than the year-ago quarter. Capital expenditure was lower both sequentially and year-over-year, which supported free cash flow despite the sequential decline in revenue and operating cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Compared to the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing notable improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$714.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$793.0M
Cash generated by operations before capital spending.
CapEx
$79.0M
Capital spending and related asset purchases.
FCF margin
22.4%
The share of revenue converted into free cash flow.
TTM FCF yield
3.8%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-06-29 | $2.9B | $779.0M | $83.0M | $696.0M | 23.8% |
| 2025-09-28 | $3.2B | $585.0M | $77.0M | $508.0M | 16.0% |
| 2025-12-31 | $3.3B | $891.0M | $98.0M | $793.0M | 23.8% |
| 2026-03-29 | $3.2B | $793.0M | $79.0M | $714.0M | 22.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 63.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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.
Year-over-Year Operating Cash Flow Improvement
Operating cash flow was higher than the same quarter last year, while capital expenditure was lower, leading to a substantially higher free cash flow. The filing notes that the company continues to generate strong positive operating cash flows.
This improvement in cash generation strengthened the company's liquidity position, with the cash balance increasing compared to the end of the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue, after deducting capital expenditure, produced a free cash flow margin that was higher than the year-ago quarter. Capital expenditure was lower both sequentially and year-over-year, which supported free cash flow despite the sequential decline in revenue and operating cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Compared to the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing notable improvement.
Monitor the level of capital expenditure relative to operating cash flow, as it has decreased both sequentially and year-over-year.
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 | $70.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.8% | 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.