Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin in the current quarter was lower than both the immediately preceding quarter and the same quarter one year earlier. The decline was driven by a substantial reduction in operating cash flow, even as revenue increased.
- Revenue was higher than the prior quarter and the year-ago quarter, but operating cash flow was lower, resulting in a much lower free cash flow. Capital expenditure was slightly higher than the prior quarter, further contributing to the weakened cash conversion.
- Compared to the immediately preceding quarter, free cash flow and margin were significantly lower. Versus the same quarter one year earlier, free cash flow and margin also declined, despite revenue being higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$92.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$148.0M
Cash generated by operations before capital spending.
CapEx
$56.0M
Capital spending and related asset purchases.
FCF margin
4.3%
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 | $2.0B | $608.0M | $40.0M | $568.0M | 27.8% |
| 2024-09-30 | $2.2B | $572.0M | $41.0M | $531.0M | 24.3% |
| 2024-12-28 | $2.0B | $752.0M | $42.0M | $710.0M | 35.4% |
| 2025-03-29 | $2.1B | $148.0M | $56.0M | $92.0M | 4.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 19.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$22.0B | 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 was lower than the prior quarter and the year-ago quarter, while revenue was higher. This was the primary factor behind the lower free cash flow.
The lower operating cash flow led to a sharp reduction in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the year-ago quarter, but operating cash flow was lower, resulting in a much lower free cash flow. Capital expenditure was slightly higher than the prior quarter, further contributing to the weakened cash conversion.
Compared to the immediately preceding quarter, free cash flow and margin were significantly lower. Versus the same quarter one year earlier, free cash flow and margin also declined, despite revenue being higher.
Monitor trade accounts receivable and inventory levels, which increased from the prior fiscal year-end as shown in the filing context.