Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved compared to the same quarter a year earlier, though both measures were lower than the immediately preceding quarter. The decline from the prior quarter was primarily driven by lower revenue and reduced operating cash flow.
- Revenue was higher than the year-ago quarter, while operating cash flow, free cash flow, and free cash flow margin all improved compared to that period. Capital expenditure was slightly higher than a year earlier but stable compared to the prior quarter.
- Compared with the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all moved lower. Versus the same quarter one year ago, all metrics improved, with the largest sequential improvement in free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$695.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$273.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$349.0M
Cash generated by operations before capital spending.
CapEx
$76.0M
Capital spending and related asset purchases.
FCF margin
7.6%
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 | $3.6B | $446.0M | $153.0M | $293.0M | 8.1% |
| 2025-03-29 | $3.3B | -$124.0M | $56.0M | -$180.0M | -5.4% |
| 2025-06-28 | $3.7B | $387.0M | $78.0M | $309.0M | 8.3% |
| 2025-09-27 | $3.6B | $349.0M | $76.0M | $273.0M | 7.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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.
Free cash flow margin contraction from prior quarter
The free cash flow margin weakened from the immediately preceding quarter, largely reflecting a reduction in revenue and operating cash flow. Capital expenditure remained broadly stable, so the margin decline is primarily attributable to lower cash generation from operations.
If operating cash flow does not recover in the coming quarter, free cash flow may remain under pressure relative to recent levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the year-ago quarter, while operating cash flow, free cash flow, and free cash flow margin all improved compared to that period. Capital expenditure was slightly higher than a year earlier but stable compared to the prior quarter.
Compared with the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all moved lower. Versus the same quarter one year ago, all metrics improved, with the largest sequential improvement in free cash flow and margin.
Monitor the trend in free cash flow margin to see if the sequential decline from the prior quarter continues or stabilizes.