Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow margin improved substantially compared to both the preceding quarter and the same quarter a year earlier, driven by a significant increase in operating cash flow relative to revenue. Capital expenditure remained modest, contributing to the strong cash conversion, and the company's filing discusses liquidity and capital resources including cash flow and capital expenditure analysis.
- Revenue was higher than both prior periods, while operating cash flow grew at a faster pace, resulting in a free cash flow margin that was markedly higher. Capital expenditure increased only slightly, supporting the conversion.
- Compared to the immediately preceding quarter, free cash flow and its margin were substantially higher, reflecting a stronger operating cash flow. Versus the same quarter one year earlier, free cash flow and margin also improved, with operating cash flow outpacing revenue growth.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$43.6M
Capital spending and related asset purchases.
FCF margin
41.5%
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 |
|---|---|---|---|---|---|
| 2025-03-29 | $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% |
| 2025-12-27 | $2.5B | $1.1B | $43.6M | $1.0B | 41.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 184.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | 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 Improvement
The quarter saw a notable increase in operating cash flow compared to both the prior quarter and the year-ago period, which was the primary factor behind the higher free cash flow and margin.
This improvement in cash generation strengthens the company's liquidity position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both prior periods, while operating cash flow grew at a faster pace, resulting in a free cash flow margin that was markedly higher. Capital expenditure increased only slightly, supporting the conversion.
Compared to the immediately preceding quarter, free cash flow and its margin were substantially higher, reflecting a stronger operating cash flow. Versus the same quarter one year earlier, free cash flow and margin also improved, with operating cash flow outpacing revenue growth.
Monitor whether operating cash flow can sustain its elevated level in subsequent quarters.