Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter and the year-ago quarter, while operating cash flow rose more sharply, driving free cash flow higher. The free cash flow margin improved compared to both periods.
- The conversion of revenue into operating cash flow strengthened, and despite higher capital spending, free cash flow expanded as a share of revenue. The filing notes that the company presents cash flow information separately for its two borrowing groups, which supports the analysis of the consolidated figures.
- Compared to the prior quarter, revenue and operating cash flow were both higher, and free cash flow increased. Relative to the same quarter last year, all metrics were also higher, with operating cash flow growing more than the revenue increase, yielding a stronger free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$929.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$527.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$700.0M
Cash generated by operations before capital spending.
CapEx
$173.0M
Capital spending and related asset purchases.
FCF margin
12.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2026-01-03 | $4.2B | $700.0M | $173.0M | $527.0M | 12.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 224.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | 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 Expansion
Operating cash flow grew substantially compared to both the prior quarter and the same quarter last year, outpacing the growth in revenue.
This improvement directly lifted free cash flow and the free cash flow margin to higher levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion of revenue into operating cash flow strengthened, and despite higher capital spending, free cash flow expanded as a share of revenue. The filing notes that the company presents cash flow information separately for its two borrowing groups, which supports the analysis of the consolidated figures.
Compared to the prior quarter, revenue and operating cash flow were both higher, and free cash flow increased. Relative to the same quarter last year, all metrics were also higher, with operating cash flow growing more than the revenue increase, yielding a stronger free cash flow margin.
Monitor the level of capital expenditure, which rose compared to both the prior quarter and the year-ago quarter, for its potential impact on free cash flow generation.