Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow rose and capital expenditure fell, though it remained lower than the same quarter last year. The free cash flow margin strengthened from the prior quarter but weakened compared to the year-ago period.
- Revenue increased while operating cash flow grew at a faster pace, and capital expenditure declined, resulting in higher free cash flow and an improved free cash flow margin relative to the preceding quarter.
- Compared to the prior quarter, free cash flow and margin were higher, driven by stronger operating cash flow and lower capital expenditure. Versus the same quarter last year, free cash flow and margin were lower, as operating cash flow declined despite a reduction in capital expenditure.
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
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$323.7M
Capital spending and related asset purchases.
FCF margin
12.8%
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 |
|---|---|---|---|---|---|
| 2025-03-30 | $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% |
| 2025-12-28 | $9.9B | $1.6B | $323.7M | $1.3B | 12.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 434.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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 Improvement
Operating cash flow increased sequentially, contributing to a higher free cash flow and margin compared to the prior quarter.
This was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow grew at a faster pace, and capital expenditure declined, resulting in higher free cash flow and an improved free cash flow margin relative to the preceding quarter.
Compared to the prior quarter, free cash flow and margin were higher, driven by stronger operating cash flow and lower capital expenditure. Versus the same quarter last year, free cash flow and margin were lower, as operating cash flow declined despite a reduction in capital expenditure.
Monitor the trajectory of operating cash flow, which declined year-over-year despite higher revenue.