Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and higher than a year ago. Free cash flow margin weakened sequentially but was lower than the same quarter last year.
- Operating cash flow was lower than the prior quarter and slightly below the year-ago quarter, while capital expenditure was higher than a year ago but slightly lower than the prior quarter. The resulting free cash flow and free cash flow margin both declined sequentially and were below the year-ago level.
- Compared to the immediately preceding quarter, revenue was stable but operating cash flow and free cash flow were significantly lower, causing a weakened free cash flow margin. Versus the same quarter one year earlier, revenue was higher but free cash flow was lower, resulting in a lower free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$607.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$865.0M
Cash generated by operations before capital spending.
CapEx
$258.0M
Capital spending and related asset purchases.
FCF margin
13.0%
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 |
|---|---|---|---|---|---|
| 2025-03-28 | $4.1B | $653.0M | $230.0M | $423.0M | 10.2% |
| 2025-06-27 | $4.5B | $1.2B | $230.0M | $957.0M | 21.1% |
| 2025-09-26 | $4.7B | $1.4B | $271.0M | $1.1B | 24.2% |
| 2025-12-26 | $4.7B | $865.0M | $258.0M | $607.0M | 13.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 80.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.5B | 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 Decline
The strongest observable driver is the decline in operating cash flow relative to both the prior quarter and the year-ago quarter, despite revenue being stable sequentially and higher year-over-year. This directly reduced free cash flow and margin.
The lower operating cash flow was the primary factor behind the weakened free cash flow generation this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter and slightly below the year-ago quarter, while capital expenditure was higher than a year ago but slightly lower than the prior quarter. The resulting free cash flow and free cash flow margin both declined sequentially and were below the year-ago level.
Compared to the immediately preceding quarter, revenue was stable but operating cash flow and free cash flow were significantly lower, causing a weakened free cash flow margin. Versus the same quarter one year earlier, revenue was higher but free cash flow was lower, resulting in a lower free cash flow margin.
Monitor the relationship between operating cash flow and revenue, as operating cash flow declined despite stable revenue compared to the prior quarter.