Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened sharply this quarter, with free cash flow and margin declining versus both the prior quarter and the same quarter last year. Revenue was stable compared to the prior quarter but higher than a year ago, while operating cash flow fell markedly.
- Despite revenue holding steady, operating cash flow dropped substantially, leading to a much lower free cash flow and a narrower free cash flow margin compared to both the prior quarter and the year-ago period.
- Sequentially, free cash flow and margin fell sharply as operating cash flow declined while revenue was unchanged. Year over year, revenue was higher but operating cash flow was slightly lower, resulting in a lower free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$80.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$112.6M
Cash generated by operations before capital spending.
CapEx
$32.4M
Capital spending and related asset purchases.
FCF margin
4.7%
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 |
|---|---|---|---|---|---|
| 2024-12-28 | $2.2B | $506.0M | $30.9M | $475.1M | 21.6% |
| 2025-03-29 | $1.6B | $144.3M | $30.9M | $113.4M | 7.2% |
| 2025-06-28 | $1.7B | $446.8M | $35.3M | $411.5M | 23.9% |
| 2025-09-27 | $1.7B | $112.6M | $32.4M | $80.2M | 4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 29.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.7B | 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 was lower sequentially and year over year, even though revenue was stable or higher. This decline was the primary observable factor behind the weaker free cash flow and margin.
The reduction in operating cash flow directly lowered free cash flow and compressed the free cash flow margin compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite revenue holding steady, operating cash flow dropped substantially, leading to a much lower free cash flow and a narrower free cash flow margin compared to both the prior quarter and the year-ago period.
Sequentially, free cash flow and margin fell sharply as operating cash flow declined while revenue was unchanged. Year over year, revenue was higher but operating cash flow was slightly lower, resulting in a lower free cash flow and margin.
The level of operating cash flow warrants close monitoring, as it drove the significant decline in cash generation this quarter.