Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter, while free cash flow margin weakened slightly. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and margin were all lower.
- Operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter, indicating a weaker conversion of revenue into cash. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter, contributing to a free cash flow margin that was stable sequentially but lower year over year.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, while free cash flow margin was slightly lower. Compared to the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$503.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$115.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$134.3M
Cash generated by operations before capital spending.
CapEx
$18.9M
Capital spending and related asset purchases.
FCF margin
16.0%
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 |
|---|---|---|---|---|---|
| 2024-09-29 | $684.0M | $147.9M | $22.3M | $125.6M | 18.4% |
| 2024-12-29 | $729.4M | $174.2M | $24.5M | $149.8M | 20.5% |
| 2025-03-30 | $664.8M | $128.2M | $16.0M | $112.2M | 16.9% |
| 2025-06-29 | $720.3M | $134.3M | $18.9M | $115.5M | 16.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 214.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.2B | 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 Conversion
Operating cash flow grew sequentially but declined year over year, and its margin relative to revenue was lower in both comparisons. This was the strongest observable driver of the free cash flow change.
The lower operating cash flow conversion rate reduced free cash flow compared to the year-ago quarter despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter, indicating a weaker conversion of revenue into cash. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter, contributing to a free cash flow margin that was stable sequentially but lower year over year.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, while free cash flow margin was slightly lower. Compared to the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and margin were all lower.
Monitor the trend in operating cash flow relative to revenue, as the conversion rate weakened both sequentially and year over year.