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, reversing a substantial negative position from the prior quarter, though it remained lower than the same quarter last year. Revenue increased slightly from the previous quarter, while operating cash flow improved sharply.
- Revenue expanded modestly compared to the prior quarter, while operating cash flow moved from a large outflow to a positive inflow, and capital expenditure was slightly higher. The free cash flow margin became positive, contrasting with a deeply negative margin in the prior quarter, indicating a material improvement in cash conversion efficiency.
- Compared to the prior quarter, free cash flow improved markedly as operating cash flow recovered from negative to positive. Relative to the same quarter one year earlier, free cash flow and free cash flow margin were both lower, due to a smaller operating cash flow and a slightly higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$413.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$134.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$214.3M
Cash generated by operations before capital spending.
CapEx
$79.6M
Capital spending and related asset purchases.
FCF margin
3.4%
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 |
|---|---|---|---|---|---|
| 2024-09-28 | $3.8B | $285.8M | $86.5M | $199.3M | 5.3% |
| 2024-12-28 | $3.7B | $679.1M | $114.5M | $564.6M | 15.2% |
| 2025-03-29 | $3.7B | -$420.0M | $65.0M | -$485.0M | -13.0% |
| 2025-06-28 | $3.9B | $214.3M | $79.6M | $134.7M | 3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 132.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sharp Recovery in Operating Cash Flow
The strongest observable driver this quarter was the swing in operating cash flow from a deep negative to a positive, which directly enabled the transition from negative to positive free cash flow. This shift overshadowed a modest increase in revenue and capital expenditure.
The conversion from negative to positive free cash flow reflects a material improvement in the company's ability to generate cash from its operations during the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue expanded modestly compared to the prior quarter, while operating cash flow moved from a large outflow to a positive inflow, and capital expenditure was slightly higher. The free cash flow margin became positive, contrasting with a deeply negative margin in the prior quarter, indicating a material improvement in cash conversion efficiency.
Compared to the prior quarter, free cash flow improved markedly as operating cash flow recovered from negative to positive. Relative to the same quarter one year earlier, free cash flow and free cash flow margin were both lower, due to a smaller operating cash flow and a slightly higher capital expenditure.
Monitor whether operating cash flow can sustain its positive level in upcoming quarters, given the prior quarter's large outflow.