Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Tyson Foods generated negative free cash flow in the quarter, driven by a negative operating cash flow despite lower capital spending. Compared to the prior quarter, cash conversion weakened sharply, but year-over-year the free cash flow deficit improved from the prior year's second quarter.
- Revenue declined from the prior quarter, while operating cash flow turned negative, resulting in a negative free cash flow margin. Capital expenditure was lower than both the previous quarter and the year-ago period, but the reduction was insufficient to offset the operating cash flow shortfall.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both moved from positive to negative, and the free cash flow margin weakened substantially. Relative to the same quarter one year earlier, revenue was higher, operating cash flow improved (though still negative), and free cash flow was less negative, reflecting a mixed year-over-year comparison.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$258.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$113.0M
Cash generated by operations before capital spending.
CapEx
$145.0M
Capital spending and related asset purchases.
FCF margin
-1.9%
The share of revenue converted into free cash flow.
TTM FCF yield
n/a
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-06-28 | $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% |
| 2026-03-28 | $13.7B | -$113.0M | $145.0M | -$258.0M | -1.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -99.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | 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 Decline
Operating cash flow dropped from a positive level in the prior quarter to a negative figure, overwhelming the reduction in capital expenditure and pushing free cash flow into negative territory. The filing context states that cash needs are expected to be met through current cash on hand, operating cash flows, or borrowings, and management believes liquidity will be sufficient.
The negative operating cash flow was the strongest observable driver of the quarter's negative free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the prior quarter, while operating cash flow turned negative, resulting in a negative free cash flow margin. Capital expenditure was lower than both the previous quarter and the year-ago period, but the reduction was insufficient to offset the operating cash flow shortfall.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both moved from positive to negative, and the free cash flow margin weakened substantially. Relative to the same quarter one year earlier, revenue was higher, operating cash flow improved (though still negative), and free cash flow was less negative, reflecting a mixed year-over-year comparison.
Monitor the trajectory of operating cash flow, as its swing from positive to negative was the primary factor behind the current quarter's free cash flow deficit.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | n/a | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.