Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased slightly from the prior quarter but increased from the same quarter last year. Free cash flow and free cash flow margin improved significantly compared to both periods, driven by higher operating cash flow and relatively stable capital expenditure.
- Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was moderately lower than the prior quarter but slightly higher than a year ago. As a result, free cash flow and free cash flow margin strengthened, with the margin improving substantially from the prior quarter.
- Compared to the preceding quarter, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all higher. Compared to the same quarter one year earlier, revenue was higher, and all cash flow metrics improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$620.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$819.0M
Cash generated by operations before capital spending.
CapEx
$199.0M
Capital spending and related asset purchases.
FCF margin
3.2%
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 |
|---|---|---|---|---|---|
| 2024-06-29 | $20.6B | $1.6B | $302.0M | $1.3B | 6.4% |
| 2024-09-28 | $20.5B | $53.0M | $122.0M | -$69.0M | -0.3% |
| 2024-12-28 | $20.2B | $445.0M | $211.0M | $234.0M | 1.2% |
| 2025-03-29 | $19.6B | $819.0M | $199.0M | $620.0M | 3.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 154.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 improvement
Operating cash flow increased significantly from both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow.
The higher operating cash flow enabled the company to generate free cash flow at a stronger margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was moderately lower than the prior quarter but slightly higher than a year ago. As a result, free cash flow and free cash flow margin strengthened, with the margin improving substantially from the prior quarter.
Compared to the preceding quarter, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all higher. Compared to the same quarter one year earlier, revenue was higher, and all cash flow metrics improved.
Proceeds from sales of plant and equipment, which contributed to free cash flow in the year-to-date period, should be monitored for sustainability.