Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus the prior quarter, driven by stronger operating cash flow despite slightly lower revenue. Compared with the same quarter last year, free cash flow was higher but the margin narrowed modestly.
- Revenue was lower than the prior quarter, but operating cash flow rose substantially, converting a higher share of revenue into cash. Capital expenditure was slightly reduced, which together with the operating cash flow improvement produced a free cash flow margin that was higher than the prior quarter but slightly lower than the year-ago quarter.
- Compared with the immediately preceding quarter, free cash flow and margin both improved significantly. Versus the same quarter one year earlier, free cash flow was higher but free cash flow margin was slightly lower.
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
$772.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$832.0M
Cash generated by operations before capital spending.
CapEx
$60.0M
Capital spending and related asset purchases.
FCF margin
33.8%
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 | $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% |
| 2025-12-27 | $2.3B | $832.0M | $60.0M | $772.0M | 33.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 173.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$26.8B | 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 Strength
Operating cash flow increased sharply from the prior quarter, rising even as revenue slightly decreased. This was the strongest observable driver of the quarter's free cash flow improvement.
Higher operating cash flow directly boosted free cash flow and margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, but operating cash flow rose substantially, converting a higher share of revenue into cash. Capital expenditure was slightly reduced, which together with the operating cash flow improvement produced a free cash flow margin that was higher than the prior quarter but slightly lower than the year-ago quarter.
Compared with the immediately preceding quarter, free cash flow and margin both improved significantly. Versus the same quarter one year earlier, free cash flow was higher but free cash flow margin was slightly lower.
Monitor the cash conversion efficiency, as the margin declined year over year despite a higher absolute free cash flow.