Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to a negative figure one year earlier, though it weakened sharply from the prior quarter. Operating cash flow improved year over year but declined sequentially, while capital expenditure rose relative to both periods.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow as a proportion of revenue weakened sequentially but improved year over year, resulting in a free cash flow margin that was positive versus a negative margin one year earlier but much lower than the prior quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased, while capital expenditure increased. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin all improved, with capital expenditure also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$952.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$30.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$307.9M
Cash generated by operations before capital spending.
CapEx
$277.6M
Capital spending and related asset purchases.
FCF margin
0.8%
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 |
|---|---|---|---|---|---|
| 2024-12-28 | $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% |
| 2025-09-27 | $3.7B | $307.9M | $277.6M | $30.3M | 0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 11.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.5% | 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.
Capital Expenditure Increase
Capital expenditure rose compared to both the prior quarter and the same quarter one year earlier, which was the strongest observable driver of the decline in free cash flow from the prior quarter.
Higher capital expenditure reduced free cash flow despite improved operating cash flow year over year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow as a proportion of revenue weakened sequentially but improved year over year, resulting in a free cash flow margin that was positive versus a negative margin one year earlier but much lower than the prior quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased, while capital expenditure increased. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin all improved, with capital expenditure also higher.
Monitor the level of capital expenditure relative to operating cash flow, as it consumed a larger share of operating cash flow this quarter compared to both the prior quarter and the year-ago quarter.