Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than the prior quarter but improved compared to the same quarter last year. The free cash flow margin weakened sequentially but strengthened year-over-year.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but slightly higher than the year-ago quarter. Capital expenditure was higher than both comparison periods. The resulting free cash flow and free cash flow margin were lower sequentially but higher year-over-year.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower, driven by a significantly lower operating cash flow despite higher revenue. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher, with operating cash flow slightly higher and revenue 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
$64.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$135.0M
Cash generated by operations before capital spending.
CapEx
$71.0M
Capital spending and related asset purchases.
FCF margin
2.5%
The share of revenue converted into free cash flow.
TTM FCF yield
2.7%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-06-28 | $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% |
| 2026-03-28 | $2.5B | $135.0M | $71.0M | $64.0M | 2.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 12.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$27.4B | 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 Volatility
Operating cash flow was substantially lower than the prior quarter despite higher revenue, representing the strongest observable driver of the sequential decline in free cash flow. The year-ago comparison shows operating cash flow was slightly higher, but the sequential drop is notable.
The sequential weakening in operating cash flow directly reduced free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but slightly higher than the year-ago quarter. Capital expenditure was higher than both comparison periods. The resulting free cash flow and free cash flow margin were lower sequentially but higher year-over-year.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower, driven by a significantly lower operating cash flow despite higher revenue. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher, with operating cash flow slightly higher and revenue higher.
Monitor the relationship between revenue growth and operating cash flow, as revenue increased while operating cash flow declined sequentially.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $68.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.7% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 52.1x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.