Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sharply from the prior quarter and was lower than the same quarter last year. Operating cash flow declined significantly while capital expenditure rose, compressing free cash flow.
- Revenue was lower than the prior quarter but slightly higher than a year ago. Operating cash flow fell substantially from the prior quarter and was roughly stable versus last year, while capital expenditure increased both sequentially and year-over-year, resulting in a free cash flow margin that was lower than both comparison periods.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all declined. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow was similar, but capital expenditure was higher, leading to a lower free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$42.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$122.2M
Cash generated by operations before capital spending.
CapEx
$79.9M
Capital spending and related asset purchases.
FCF margin
2.5%
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 |
|---|---|---|---|---|---|
| 2024-06-29 | $1.5B | $277.3M | $33.4M | $243.9M | 16.1% |
| 2024-09-28 | $1.7B | $97.2M | $41.7M | $55.5M | 3.2% |
| 2024-12-28 | $2.1B | $738.4M | $61.2M | $677.2M | 31.6% |
| 2025-03-29 | $1.7B | $122.2M | $79.9M | $42.3M | 2.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 32.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $779.9M | 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 dropped substantially from the prior quarter and was essentially flat year-over-year, while capital expenditure increased. This combination was the strongest observable driver of the lower free cash flow and margin.
The decline in operating cash flow relative to capital expenditure weakened free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but slightly higher than a year ago. Operating cash flow fell substantially from the prior quarter and was roughly stable versus last year, while capital expenditure increased both sequentially and year-over-year, resulting in a free cash flow margin that was lower than both comparison periods.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all declined. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow was similar, but capital expenditure was higher, leading to a lower free cash flow and margin.
Monitor the trajectory of capital expenditure relative to operating cash flow, as higher spending with lower cash generation compressed free cash flow.