Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sequentially and year-over-year, with free cash flow margin reaching a quarterly high. Revenue was slightly lower year-over-year but higher than the prior quarter.
- Operating cash flow increased from both the prior quarter and the year-ago quarter, while capital expenditure remained relatively stable, resulting in higher free cash flow and an improved free cash flow margin in the current quarter.
- Compared to the immediate prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, while revenue was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$360.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$154.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$160.3M
Cash generated by operations before capital spending.
CapEx
$5.6M
Capital spending and related asset purchases.
FCF margin
16.0%
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 |
|---|---|---|---|---|---|
| 2025-04-04 | $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% |
| 2026-01-02 | $969.8M | $160.3M | $5.6M | $154.7M | 16.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.1B | 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 Growth
Operating cash flow rose compared to both the prior quarter and the year-ago quarter, driving an increase in free cash flow. This occurred even as revenue was slightly lower than a year earlier.
The improvement in operating cash flow was the main contributor to the higher free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased from both the prior quarter and the year-ago quarter, while capital expenditure remained relatively stable, resulting in higher free cash flow and an improved free cash flow margin in the current quarter.
Compared to the immediate prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, while revenue was lower.
Monitor whether operating cash flow can sustain its improved level relative to both the prior quarter and the year-ago period.