Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved from the prior quarter as operating cash flow increased, leading to a higher free cash flow margin. Relative to the same quarter a year ago, free cash flow was nearly unchanged while the margin edged higher.
- Revenue was lower than the prior quarter, but operating cash flow was higher, yielding free cash flow that was higher than the prior quarter. The free cash flow margin improved from the prior quarter and was slightly above the year-ago margin.
- Compared to the prior quarter, free cash flow improved substantially as operating cash flow increased while capital expenditure remained similar. Compared to the same quarter a year ago, free cash flow was nearly unchanged, with a slightly higher margin.
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
$339.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$395.5M
Cash generated by operations before capital spending.
CapEx
$56.5M
Capital spending and related asset purchases.
FCF margin
32.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2026-01-02 | $1.0B | $395.5M | $56.5M | $339.0M | 32.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 428.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow
Operating cash flow increased significantly from the prior quarter, supported by working capital changes, particularly accounts receivable, as noted in the filing. This was the primary driver of the higher free cash flow.
This improvement enabled the company to achieve a higher free cash flow margin despite lower revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, but operating cash flow was higher, yielding free cash flow that was higher than the prior quarter. The free cash flow margin improved from the prior quarter and was slightly above the year-ago margin.
Compared to the prior quarter, free cash flow improved substantially as operating cash flow increased while capital expenditure remained similar. Compared to the same quarter a year ago, free cash flow was nearly unchanged, with a slightly higher margin.
Monitor the trend in operating expenses, which increased from the year-ago period and contributed to lower net income.