Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by a significant increase in operating cash flow. The free cash flow margin recovered to a level close to the same quarter last year.
- Revenue was stable compared to the prior quarter, while operating cash flow rose substantially, leading to a much higher free cash flow. Capital expenditure was slightly higher than both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, free cash flow and margin improved markedly as operating cash flow strengthened. Versus the same quarter last year, free cash flow was slightly higher, though the margin was marginally lower due to a modest increase in capital expenditure.
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
$573.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$631.0M
Cash generated by operations before capital spending.
CapEx
$58.0M
Capital spending and related asset purchases.
FCF margin
25.6%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $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% |
| 2025-06-28 | $2.2B | $631.0M | $58.0M | $573.0M | 25.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.6B | 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 Recovery
Operating cash flow increased substantially from the prior quarter, driving the improvement in free cash flow. This was the strongest observable factor in the quarter's performance.
The higher operating cash flow directly lifted free cash flow and margin to levels near the prior year's same quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, while operating cash flow rose substantially, leading to a much higher free cash flow. Capital expenditure was slightly higher than both the prior quarter and the year-ago quarter.
Compared to the prior quarter, free cash flow and margin improved markedly as operating cash flow strengthened. Versus the same quarter last year, free cash flow was slightly higher, though the margin was marginally lower due to a modest increase in capital expenditure.
Monitor the level of capital expenditure relative to the prior year, as it was higher in the current quarter.