Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter, while free cash flow improved from a lower base. Versus the same quarter last year, free cash flow declined sharply despite higher revenue, as operating cash flow fell and capital expenditure rose.
- Operating cash flow as a share of revenue weakened versus the prior quarter and declined significantly from the year-ago period. The free cash flow margin improved sequentially but remained well below the prior year level, reflecting higher capital expenditure relative to operating cash generation.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow improved. Versus the same quarter one year earlier, revenue was higher but operating cash flow was lower, capital expenditure was higher, and free cash flow was substantially lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$740.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$59.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$324.8M
Cash generated by operations before capital spending.
CapEx
$265.6M
Capital spending and related asset purchases.
FCF margin
1.5%
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 |
|---|---|---|---|---|---|
| 2025-03-29 | $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% |
| 2025-12-27 | $3.9B | $324.8M | $265.6M | $59.3M | 1.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 5.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $44.1M | 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 outpacing operating cash flow
Capital expenditure increased compared to both the prior quarter and the year-ago period, while operating cash flow improved sequentially but fell year over year. This divergence compressed free cash flow, particularly versus the prior year.
The combination of higher capital spending and lower operating cash flow drove free cash flow to a level well below the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue weakened versus the prior quarter and declined significantly from the year-ago period. The free cash flow margin improved sequentially but remained well below the prior year level, reflecting higher capital expenditure relative to operating cash generation.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow improved. Versus the same quarter one year earlier, revenue was higher but operating cash flow was lower, capital expenditure was higher, and free cash flow was substantially lower.
Monitor the trajectory of operating cash flow relative to revenue, as it declined year over year despite higher sales.