Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter and the year-ago quarter, while free cash flow margin declined in both comparisons. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter.
- Revenue rose, but operating cash flow fell from the prior quarter, leading to a lower free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter, reducing free cash flow relative to operating cash flow.
- Compared to the prior quarter, free cash flow and free cash flow margin weakened, while revenue improved. Versus the year-ago quarter, free cash flow and free cash flow margin also weakened, despite higher revenue and operating cash flow.
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
$441.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$507.0M
Cash generated by operations before capital spending.
CapEx
$66.0M
Capital spending and related asset purchases.
FCF margin
18.1%
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 |
|---|---|---|---|---|---|
| 2024-12-28 | $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% |
| 2025-09-30 | $2.4B | $507.0M | $66.0M | $441.0M | 18.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 72.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$26.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the year-ago quarter, which reduced free cash flow conversion from operating cash flow. This is the strongest observable driver of the decline in free cash flow margin.
Higher capital expenditure directly lowered free cash flow and free cash flow margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose, but operating cash flow fell from the prior quarter, leading to a lower free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter, reducing free cash flow relative to operating cash flow.
Compared to the prior quarter, free cash flow and free cash flow margin weakened, while revenue improved. Versus the year-ago quarter, free cash flow and free cash flow margin also weakened, despite higher revenue and operating cash flow.
Monitor the trend in capital expenditure, as it increased relative to both the prior quarter and the year-ago quarter.