Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but free cash flow decreased significantly. The free cash flow margin weakened substantially, reflecting a lower rate of cash conversion.
- Operating cash flow fell relative to revenue, while capital expenditure was lower. The resulting free cash flow and margin both declined, indicating a weakened cash conversion efficiency.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, with a lower margin. Versus the same quarter a year earlier, the pattern was similar: revenue increased but all cash flow metrics decreased and margin contracted.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$144.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$200.0M
Cash generated by operations before capital spending.
CapEx
$56.0M
Capital spending and related asset purchases.
FCF margin
13.1%
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 |
|---|---|---|---|---|---|
| 2024-12-27 | $1.1B | $377.2M | $39.0M | $338.2M | 31.7% |
| 2025-03-28 | $953.2M | $409.4M | $38.5M | $370.9M | 38.9% |
| 2025-06-27 | $965.0M | $314.2M | $61.5M | $252.7M | 26.2% |
| 2025-10-03 | $1.1B | $200.0M | $56.0M | $144.0M | 13.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $664.9M | 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 Decline
Operating cash flow decreased despite higher revenue, driving the lower free cash flow and margin. The filing notes that for the fiscal year, the decrease in operating cash flow was primarily due to working capital changes, particularly inventory and accounts receivable, and lower net income.
This driver suggests that while revenue growth continued, cash generation efficiency weakened, which could affect future free cash flow if not reversed.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow fell relative to revenue, while capital expenditure was lower. The resulting free cash flow and margin both declined, indicating a weakened cash conversion efficiency.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, with a lower margin. Versus the same quarter a year earlier, the pattern was similar: revenue increased but all cash flow metrics decreased and margin contracted.
Monitor the trajectory of operating cash flow relative to revenue, as the current quarter showed a significant divergence.