Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from a negative figure in the prior quarter and improved from the same quarter last year. The improvement was driven by higher operating cash flow and lower capital spending.
- Revenue was slightly lower than the prior quarter, but operating cash flow was significantly higher, resulting in a much improved free cash flow and a higher free cash flow margin compared to both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow improved from a negative to a positive figure, while capital expenditures decreased. Versus the same quarter one year earlier, free cash flow and free cash flow margin both increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$385.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$525.0M
Cash generated by operations before capital spending.
CapEx
$140.0M
Capital spending and related asset purchases.
FCF margin
1.9%
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 |
|---|---|---|---|---|---|
| 2025-03-29 | $19.6B | $819.0M | $199.0M | $620.0M | 3.2% |
| 2025-06-28 | $21.1B | $1.2B | $374.0M | $819.0M | 3.9% |
| 2025-09-27 | $21.1B | $86.0M | $160.0M | -$74.0M | -0.3% |
| 2025-12-27 | $20.8B | $525.0M | $140.0M | $385.0M | 1.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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 was higher than both the prior quarter and the year-ago quarter, more than offsetting the slight decline in revenue.
This was the primary factor behind the swing to positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter, but operating cash flow was significantly higher, resulting in a much improved free cash flow and a higher free cash flow margin compared to both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow improved from a negative to a positive figure, while capital expenditures decreased. Versus the same quarter one year earlier, free cash flow and free cash flow margin both increased.
Monitor the level of proceeds from sales of plant and equipment, which the filing notes partially offset the year-to-date free cash flow improvement.