Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased sharply from the prior quarter as operating cash flow declined while capital expenditure also fell. Compared to the same quarter last year, free cash flow was lower and the free cash flow margin weakened despite a reduction in capital expenditure.
- Revenue was higher sequentially but operating cash flow was substantially lower, resulting in a lower free cash flow margin. The conversion from revenue to free cash flow weakened compared to both the prior quarter and the year-ago quarter.
- Compared to the preceding quarter, free cash flow and free cash flow margin were both substantially lower. Relative to the same quarter one year earlier, free cash flow also decreased, while the margin narrowed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$106.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$184.3M
Cash generated by operations before capital spending.
CapEx
$78.2M
Capital spending and related asset purchases.
FCF margin
7.2%
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 |
|---|---|---|---|---|---|
| 2024-09-27 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 62.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$853.2M | 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
The strongest observable driver was the drop in operating cash flow from the prior quarter, which fell despite a higher revenue base.
This decline was the primary factor behind the lower free cash flow and compressed margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher sequentially but operating cash flow was substantially lower, resulting in a lower free cash flow margin. The conversion from revenue to free cash flow weakened compared to both the prior quarter and the year-ago quarter.
Compared to the preceding quarter, free cash flow and free cash flow margin were both substantially lower. Relative to the same quarter one year earlier, free cash flow also decreased, while the margin narrowed.
Monitor the level of operating cash flow relative to revenue, as the current ratio weakened notably from the prior quarter.