Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter saw improved cash generation with operating cash flow turning positive and free cash flow margin rising. Revenue was higher than both prior periods.
- Free cash flow increased relative to revenue, resulting in a higher margin, as operating cash flow rose while capital expenditure remained stable.
- Compared to the previous quarter, free cash flow improved from negative to positive. Versus the same quarter a year earlier, both operating cash flow and free cash flow were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$315.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$116.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$123.8M
Cash generated by operations before capital spending.
CapEx
$7.2M
Capital spending and related asset purchases.
FCF margin
12.9%
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 |
|---|---|---|---|---|---|
| 2025-01-03 | $983.4M | $115.1M | $6.1M | $109.0M | 11.1% |
| 2025-04-04 | $840.6M | $155.6M | $6.6M | $149.0M | 17.7% |
| 2025-07-04 | $875.7M | -$53.5M | $5.9M | -$59.4M | -6.8% |
| 2025-10-03 | $901.2M | $123.8M | $7.2M | $116.6M | 12.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.2B | 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 Recovery
Operating cash flow turned positive this quarter after being negative in the previous quarter, driving a notable improvement in free cash flow.
The recovery in operating cash flow was the primary factor behind the strong free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow increased relative to revenue, resulting in a higher margin, as operating cash flow rose while capital expenditure remained stable.
Compared to the previous quarter, free cash flow improved from negative to positive. Versus the same quarter a year earlier, both operating cash flow and free cash flow were higher.
Monitor whether free cash flow margin can sustain at this level.