Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but free cash flow declined sharply. The cash conversion weakened significantly as operating cash flow fell while capital expenditure remained stable.
- Revenue rose, yet operating cash flow dropped substantially, leading to a much lower free cash flow and a thin free cash flow margin. Capital expenditure was relatively stable, so the conversion weakness was driven entirely by the decline in operating cash flow.
- Compared to the immediately preceding quarter, revenue improved but operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$456.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$49.0M
Cash generated by operations before capital spending.
CapEx
$46.7M
Capital spending and related asset purchases.
FCF margin
0.3%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $752.9M | $282.6M | $57.4M | $225.2M | 29.9% |
| 2025-03-30 | $685.7M | $161.6M | $64.0M | $97.6M | 14.2% |
| 2025-06-29 | $651.8M | $182.1M | $50.4M | $131.7M | 20.2% |
| 2025-09-28 | $769.2M | $49.0M | $46.7M | $2.4M | 0.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 2.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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
Operating cash flow decreased sharply from both the prior quarter and the year-ago quarter, despite higher revenue. The filing notes that changes in operating assets and liabilities used cash, with increases in accounts receivable, inventories, and prepayments.
The drop in operating cash flow was the strongest observable driver of the quarter's lower free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose, yet operating cash flow dropped substantially, leading to a much lower free cash flow and a thin free cash flow margin. Capital expenditure was relatively stable, so the conversion weakness was driven entirely by the decline in operating cash flow.
Compared to the immediately preceding quarter, revenue improved but operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were lower.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the weakened cash conversion this quarter.