Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply from the prior quarter, with free cash flow margin rising as operating cash flow grew faster than revenue. Compared to the same quarter last year, free cash flow and margin were also higher, supported by a larger increase in operating cash flow relative to capital expenditure.
- Revenue increased from the prior quarter, while operating cash flow rose at a higher rate, leading to a stronger free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter, but operating cash flow growth more than offset this, resulting in improved cash conversion.
- Compared to the immediately preceding quarter, free cash flow and margin were substantially higher, driven by a larger increase in operating cash flow relative to revenue. Versus the same quarter one year earlier, free cash flow and margin were also higher, with operating cash flow growing more than capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$820.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$575.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$785.8M
Cash generated by operations before capital spending.
CapEx
$210.4M
Capital spending and related asset purchases.
FCF margin
13.0%
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 |
|---|---|---|---|---|---|
| 2024-09-28 | $3.5B | $86.3M | $188.2M | -$101.9M | -2.9% |
| 2024-12-28 | $3.8B | $517.2M | $246.0M | $271.2M | 7.2% |
| 2025-03-29 | $3.5B | $216.8M | $141.3M | $75.5M | 2.2% |
| 2025-06-28 | $4.4B | $785.8M | $210.4M | $575.4M | 13.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | 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.
Operating Cash Flow Growth
Operating cash flow increased from both the prior quarter and the year-ago quarter, outpacing revenue growth. This was the strongest observable driver of the improvement in free cash flow and margin.
Higher operating cash flow directly lifted free cash flow and margin without requiring a proportional increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, while operating cash flow rose at a higher rate, leading to a stronger free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter, but operating cash flow growth more than offset this, resulting in improved cash conversion.
Compared to the immediately preceding quarter, free cash flow and margin were substantially higher, driven by a larger increase in operating cash flow relative to revenue. Versus the same quarter one year earlier, free cash flow and margin were also higher, with operating cash flow growing more than capital expenditure.
Monitor whether operating cash flow growth can sustain its current pace relative to revenue in upcoming quarters.