Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow were both higher than the prior quarter and the same quarter last year, driven by a significant improvement in cash generation relative to revenue. The free cash flow margin strengthened compared to both the preceding quarter and the year-ago period.
- Revenue was higher than both the prior quarter and the year-ago quarter, while operating cash flow increased substantially from the prior quarter and was slightly higher than the year-ago quarter. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter, resulting in free cash flow that was positive and higher than both comparison periods, with a free cash flow margin that improved from negative to positive sequentially and remained strong year-over-year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow turning from negative to positive. Versus the same quarter one year earlier, revenue was higher, operating cash flow was slightly higher, capital expenditure was higher, and free cash flow was higher, though the free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$694.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$704.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$779.6M
Cash generated by operations before capital spending.
CapEx
$75.6M
Capital spending and related asset purchases.
FCF margin
29.3%
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 |
|---|---|---|---|---|---|
| 2025-03-29 | $1.7B | $122.2M | $79.9M | $42.3M | 2.5% |
| 2025-06-28 | $1.7B | $176.1M | $187.3M | -$11.2M | -0.7% |
| 2025-09-27 | $2.0B | $53.2M | $93.8M | -$40.6M | -2.0% |
| 2025-12-27 | $2.4B | $779.6M | $75.6M | $704.0M | 29.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 194.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $793.6M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow generation
Operating cash flow was substantially higher than the prior quarter and slightly higher than the year-ago quarter, despite a sequential increase in revenue. This was the primary factor behind the positive free cash flow and improved margin.
The higher operating cash flow drove free cash flow to a positive level and supported a strong free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, while operating cash flow increased substantially from the prior quarter and was slightly higher than the year-ago quarter. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter, resulting in free cash flow that was positive and higher than both comparison periods, with a free cash flow margin that improved from negative to positive sequentially and remained strong year-over-year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow turning from negative to positive. Versus the same quarter one year earlier, revenue was higher, operating cash flow was slightly higher, capital expenditure was higher, and free cash flow was higher, though the free cash flow margin was slightly lower.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased year-over-year while operating cash flow remained relatively stable.