Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash flow from operations turned negative this quarter, leading to negative free cash flow and a weakened free cash flow margin compared to the prior quarter. Revenue was marginally higher versus both the preceding quarter and the same quarter last year, while the year-ago quarter also posted a similar negative free cash flow.
- Despite slightly higher revenue, operating cash flow was deeply negative, and after capital expenditure the free cash flow was also negative, resulting in a negative free cash flow margin that was wider than the year-ago period but less negative than that comparable quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow shifted sharply from positive to negative, while free cash flow margin fell from positive to negative. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow improved from negative to a smaller negative, free cash flow improved from a larger negative to a smaller negative, and the free cash flow margin improved from a more negative to a less negative level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$725.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$447.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$388.8M
Cash generated by operations before capital spending.
CapEx
$58.5M
Capital spending and related asset purchases.
FCF margin
-11.6%
The share of revenue converted into free cash flow.
TTM FCF yield
5.3%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-06-28 | $3.9B | $214.3M | $79.6M | $134.7M | 3.4% |
| 2025-09-27 | $3.8B | $221.2M | $65.9M | $155.3M | 4.1% |
| 2026-01-03 | $3.7B | $955.7M | $72.8M | $882.9M | 24.0% |
| 2026-04-04 | $3.8B | -$388.8M | $58.5M | -$447.3M | -11.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -750.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.4B | 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 Swing
Revenue was stable relative to the prior quarter and year-ago quarter, yet operating cash flow turned negative after being strongly positive the prior quarter. This is the strongest observable driver of the negative free cash flow.
This operating cash flow reversal drove free cash flow from positive to negative, widening the free cash flow margin gap versus the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite slightly higher revenue, operating cash flow was deeply negative, and after capital expenditure the free cash flow was also negative, resulting in a negative free cash flow margin that was wider than the year-ago period but less negative than that comparable quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow shifted sharply from positive to negative, while free cash flow margin fell from positive to negative. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow improved from negative to a smaller negative, free cash flow improved from a larger negative to a smaller negative, and the free cash flow margin improved from a more negative to a less negative level.
The sharp swing in operating cash flow from positive last quarter to negative this quarter should be monitored for sustainability and underlying patterns.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $13.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 24.9x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.