Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive from a negative prior quarter, lifting free cash flow into positive territory despite a slight decline in free cash flow margin versus the year-ago quarter. Revenue increased sequentially and year-over-year, while capital expenditure was stable.
- Revenue grew sequentially, and operating cash flow improved markedly from a negative prior quarter to a positive level, resulting in a positive free cash flow. Capital expenditure was relatively stable, and the free cash flow margin turned positive sequentially but edged lower compared to the same quarter last year.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all improved, with operating cash flow shifting from negative to positive. Versus the same quarter one year earlier, revenue was higher while operating cash flow and free cash flow were slightly lower, and free cash flow margin weakened modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$547.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$774.0M
Cash generated by operations before capital spending.
CapEx
$227.0M
Capital spending and related asset purchases.
FCF margin
3.9%
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 | $13.6B | $617.0M | $248.0M | $369.0M | 2.7% |
| 2024-12-28 | $13.6B | $1.0B | $271.0M | $760.0M | 5.6% |
| 2025-03-29 | $13.1B | -$185.0M | $193.0M | -$378.0M | -2.9% |
| 2025-06-28 | $13.9B | $774.0M | $227.0M | $547.0M | 3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 896.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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.
Operating Cash Flow Recovery
Operating cash flow rebounded from a negative level in the prior quarter to a positive level, which was the principal factor behind the swing in free cash flow from negative to positive. Revenue growth provided a supportive backdrop.
The recovery in operating cash flow reversed the prior quarter's negative free cash flow and restored positive cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew sequentially, and operating cash flow improved markedly from a negative prior quarter to a positive level, resulting in a positive free cash flow. Capital expenditure was relatively stable, and the free cash flow margin turned positive sequentially but edged lower compared to the same quarter last year.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all improved, with operating cash flow shifting from negative to positive. Versus the same quarter one year earlier, revenue was higher while operating cash flow and free cash flow were slightly lower, and free cash flow margin weakened modestly.
Monitor whether operating cash flow sustains its positive trajectory in the coming quarter, given the volatility implied by the prior quarter's negative figure.