Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than both the prior quarter and the same quarter last year, while operating cash flow declined sharply, leading to a negative free cash flow margin. The company’s cash conversion weakened significantly, with capital expenditure exceeding operating cash flow.
- Operating cash flow was lower than revenue, and capital expenditure increased relative to the prior quarter and the year-ago quarter, resulting in free cash flow turning negative. The free cash flow margin moved from positive to negative, indicating a weaker cash conversion performance.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow was substantially lower, capital expenditure was higher, and free cash flow shifted from a large positive to a negative amount. Versus the same quarter one year earlier, revenue was slightly lower, operating cash flow was much lower, capital expenditure was higher, and free cash flow turned from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$703.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$32.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$50.3M
Cash generated by operations before capital spending.
CapEx
$82.4M
Capital spending and related asset purchases.
FCF margin
-3.4%
The share of revenue converted into free cash flow.
TTM FCF yield
8.1%
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 |
|---|---|---|---|---|---|
| 2025-06-27 | $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% |
| 2026-04-03 | $943.7M | $50.3M | $82.4M | -$32.1M | -3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -90.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $916.6M | 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 sharply from both the prior quarter and the year-ago quarter, pulling free cash flow into negative territory. The filing notes that the decrease in cash from operations was primarily due to changes in working capital, particularly inventory, and lower net income.
This driver turned free cash flow from positive to negative and substantially weakened the company’s cash conversion margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than revenue, and capital expenditure increased relative to the prior quarter and the year-ago quarter, resulting in free cash flow turning negative. The free cash flow margin moved from positive to negative, indicating a weaker cash conversion performance.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow was substantially lower, capital expenditure was higher, and free cash flow shifted from a large positive to a negative amount. Versus the same quarter one year earlier, revenue was slightly lower, operating cash flow was much lower, capital expenditure was higher, and free cash flow turned from positive to negative.
Monitor the relationship between capital expenditure and operating cash flow, as capex exceeded operating cash flow this quarter, causing free cash flow to be negative.
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 | $8.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | 8.1% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 11.0x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.