Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter after a negative prior quarter, driven by a significant improvement in operating cash flow. Revenue increased compared to both the prior quarter and the same quarter last year, while capital expenditure was lower year over year.
- Operating cash flow improved substantially from the prior quarter, leading to positive free cash flow despite a moderate capital expenditure. The free cash flow margin strengthened from negative to positive, reflecting better cash conversion relative to revenue.
- Compared to the prior quarter, revenue was higher and operating cash flow improved markedly, turning free cash flow from negative to positive. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$434.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$567.4M
Capital spending and related asset purchases.
FCF margin
4.6%
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 | $9.1B | $1.5B | $798.2M | $737.4M | 8.1% |
| 2024-12-29 | $9.4B | $2.1B | $692.9M | $1.4B | 14.7% |
| 2025-03-30 | $8.8B | $292.0M | $589.2M | -$297.2M | -3.4% |
| 2025-06-29 | $9.5B | $1.0B | $567.4M | $434.3M | 4.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 77.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Recovery
Operating cash flow increased substantially from the prior quarter, reversing the negative free cash flow position. This was the strongest observable driver of the quarter's cash conversion improvement.
The improvement in operating cash flow directly enabled positive free cash flow and a higher free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved substantially from the prior quarter, leading to positive free cash flow despite a moderate capital expenditure. The free cash flow margin strengthened from negative to positive, reflecting better cash conversion relative to revenue.
Compared to the prior quarter, revenue was higher and operating cash flow improved markedly, turning free cash flow from negative to positive. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin.
Monitor whether operating cash flow can sustain its improvement relative to revenue in upcoming quarters.