Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to both the prior quarter and the same quarter last year. Operating cash flow and free cash flow improved sequentially but were lower than the year-ago period, resulting in a mixed free cash flow margin.
- The company converted a higher proportion of revenue into operating cash flow this quarter versus the prior quarter, while capital expenditure declined. This combination led to a stronger free cash flow margin sequentially, though it remained below the year-ago level.
- Compared to the prior quarter, free cash flow increased significantly as operating cash flow rose and capital spending fell. However, relative to the same quarter last year, free cash flow was lower despite higher revenue, primarily due to a decrease in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$690.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$942.0M
Cash generated by operations before capital spending.
CapEx
$252.0M
Capital spending and related asset purchases.
FCF margin
4.8%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-09-27 | $13.9B | $535.0M | $287.0M | $248.0M | 1.8% |
| 2025-12-27 | $14.3B | $942.0M | $252.0M | $690.0M | 4.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 811.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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.
Sequential Cash Flow Improvement
Operating cash flow improved markedly from the prior quarter, and capital expenditure was reduced, leading to a higher free cash flow. The company's filing notes expectations to meet cash needs through operating cash flows and other sources.
This improvement supports the company's liquidity position as outlined in the filing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a higher proportion of revenue into operating cash flow this quarter versus the prior quarter, while capital expenditure declined. This combination led to a stronger free cash flow margin sequentially, though it remained below the year-ago level.
Compared to the prior quarter, free cash flow increased significantly as operating cash flow rose and capital spending fell. However, relative to the same quarter last year, free cash flow was lower despite higher revenue, primarily due to a decrease in operating cash flow.
Monitor the trajectory of operating cash flow, which declined from the prior year even as revenue grew.