Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter, the company generated strong free cash flow with a high margin. Compared to the prior quarter and the same quarter last year, free cash flow improved significantly.
- Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Operating cash flow rose sharply, leading to a substantial increase in free cash flow and a higher free cash flow margin, aided by lower capital expenditure.
- Free cash flow and margin improved compared to both the immediate prior quarter and the year-ago quarter. Revenue was lower sequentially but higher year over year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$480.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$268.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$274.7M
Cash generated by operations before capital spending.
CapEx
$6.1M
Capital spending and related asset purchases.
FCF margin
28.6%
The share of revenue converted into free cash flow.
TTM FCF yield
4.0%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-07-04 | $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% |
| 2026-04-03 | $939.9M | $274.7M | $6.1M | $268.6M | 28.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 271.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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.
Improved Operating Cash Flow
Operating cash flow increased significantly, driven by higher operating income, lower cash taxes paid, and lower incentive bonus payments as per the filing.
This drove free cash flow to a higher level and expanded the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Operating cash flow rose sharply, leading to a substantial increase in free cash flow and a higher free cash flow margin, aided by lower capital expenditure.
Free cash flow and margin improved compared to both the immediate prior quarter and the year-ago quarter. Revenue was lower sequentially but higher year over year.
The drivers of higher operating cash flow—higher operating income, lower cash taxes, and lower incentive bonus payments—should be monitored for sustainability.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $12.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.