Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus the prior quarter and the year-ago quarter, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue was slightly higher than the prior quarter and higher than the year-ago quarter. Operating cash flow increased compared to the prior quarter but was lower than the year-ago quarter, while capital expenditure decreased both sequentially and year-over-year, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, with operating cash flow higher and capital expenditure lower. Versus the same quarter one year earlier, free cash flow and free cash flow margin were also higher, despite operating cash flow being lower, as capital expenditure was significantly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$925.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$456.0M
Capital spending and related asset purchases.
FCF margin
9.7%
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 |
|---|---|---|---|---|---|
| 2024-12-29 | $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% |
| 2025-09-28 | $9.6B | $1.4B | $456.0M | $925.8M | 9.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 695.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | 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.
Capital expenditure reduction
Capital expenditure decreased both sequentially and year-over-year, which was the strongest observable driver of the free cash flow improvement. This reduction more than offset the year-over-year decline in operating cash flow.
Lower capital expenditure directly boosted free cash flow and the free cash flow margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter and higher than the year-ago quarter. Operating cash flow increased compared to the prior quarter but was lower than the year-ago quarter, while capital expenditure decreased both sequentially and year-over-year, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, with operating cash flow higher and capital expenditure lower. Versus the same quarter one year earlier, free cash flow and free cash flow margin were also higher, despite operating cash flow being lower, as capital expenditure was significantly lower.
Monitor whether operating cash flow can sustain its sequential improvement given it remained below the year-ago level.