Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow fell sharply in the quarter compared with both the preceding quarter and the same quarter one year earlier, as a large drop in operating cash flow more than offset a reduction in capital expenditure. Revenue was unchanged from the prior quarter but increased from the year-ago period, while the free cash flow margin narrowed significantly.
- Revenue was stable sequentially, while operating cash flow fell substantially, leading to a much lower free cash flow despite a reduction in capital expenditure. The free cash flow margin declined from both comparison periods, indicating weakened cash conversion efficiency.
- Compared to the prior quarter, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower, while revenue was stable. Versus the same quarter a year ago, revenue was higher but all other metrics were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$217.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$239.1M
Cash generated by operations before capital spending.
CapEx
$21.9M
Capital spending and related asset purchases.
FCF margin
14.4%
The share of revenue converted into free cash flow.
TTM FCF yield
3.2%
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 | $239.1M | Cash generated by operations before capital spending. |
| Capital expenditures | $21.9M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $217.2M | 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 |
|---|---|---|---|---|---|
| 2022-07-01 | $2.1B | $420.8M | $218.1M | $202.7M | 9.7% |
| 2022-09-30 | $2.2B | $1.0B | $271.1M | $731.3M | 33.4% |
| 2022-12-31 | $2.1B | $731.3M | $373.0M | $358.3M | 17.0% |
| 2023-03-31 | $2.0B | $408.9M | $321.5M | $87.4M | 4.5% |
| 2023-06-30 | $2.1B | $390.8M | $430.6M | -$39.8M | -1.9% |
| 2023-09-29 | $2.2B | $566.6M | $433.0M | $133.6M | 6.1% |
| 2023-12-31 | $2.0B | $611.2M | $354.0M | $257.2M | 12.7% |
| 2024-03-29 | $1.9B | $498.7M | $233.9M | $264.8M | 14.2% |
| 2024-06-28 | $1.7B | $362.2M | $141.1M | $221.1M | 12.7% |
| 2024-09-27 | $1.8B | $465.8M | $161.7M | $304.1M | 17.3% |
| 2024-12-31 | $1.7B | $579.7M | $157.3M | $422.4M | 24.5% |
| 2025-04-04 | $1.4B | $602.3M | $147.6M | $454.7M | 31.5% |
| 2025-07-04 | $1.5B | $184.3M | $78.2M | $106.1M | 7.2% |
| 2025-10-03 | $1.6B | $418.7M | $46.3M | $372.4M | 24.0% |
| 2025-12-31 | $1.5B | $554.5M | $69.1M | $485.4M | 31.7% |
| 2026-04-03 | $1.5B | $239.1M | $21.9M | $217.2M | 14.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -650.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.0B | 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 significantly from both the prior quarter and the year-ago quarter, while capital expenditure also declined. The reduction in operating cash flow was the dominant factor behind the lower free cash flow.
The lower operating cash flow reduced free cash flow despite a benefit from reduced capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially, while operating cash flow fell substantially, leading to a much lower free cash flow despite a reduction in capital expenditure. The free cash flow margin declined from both comparison periods, indicating weakened cash conversion efficiency.
Compared to the prior quarter, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower, while revenue was stable. Versus the same quarter a year ago, revenue was higher but all other metrics were lower.
The trajectory of operating cash flow in future quarters will be a key metric to monitor, particularly given the company's stated practice of adjusting expenditures based on market conditions.
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 | $36.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.2% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 31.7x | 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. |