Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly, driven by a sharp increase in operating cash flow while capital expenditure held steady. The free cash flow margin rose to a level well above both the prior quarter and the same quarter last year.
- With revenue unchanged from the previous quarter, a materially higher operating cash flow produced a substantially larger free cash flow and a stronger free cash flow margin. Capital expenditure was slightly lower, supporting the conversion improvement.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were both higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were higher, and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$313.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$343.1M
Cash generated by operations before capital spending.
CapEx
$29.2M
Capital spending and related asset purchases.
FCF margin
20.4%
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 |
|---|---|---|---|---|---|
| 2024-12-29 | $1.5B | $332.4M | $29.0M | $303.4M | 20.2% |
| 2025-03-30 | $1.4B | $242.6M | $18.0M | $224.6M | 15.5% |
| 2025-06-29 | $1.5B | $226.6M | $30.3M | $196.3M | 13.0% |
| 2025-09-28 | $1.5B | $343.1M | $29.2M | $313.9M | 20.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 142.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow
Operating cash flow rose markedly from both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. Capital expenditure remained moderate, allowing most of the cash flow increase to pass through to free cash flow.
The higher operating cash flow drove free cash flow to a level well above both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged from the previous quarter, a materially higher operating cash flow produced a substantially larger free cash flow and a stronger free cash flow margin. Capital expenditure was slightly lower, supporting the conversion improvement.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were both higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were higher, and the margin strengthened.
The level of capital expenditure relative to the prior year was higher; monitor whether this trend continues and its effect on free cash flow.