Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's free cash flow was negative, a decline from the prior quarter's positive result and a deeper deficit than the same quarter last year. Revenue was lower than the previous quarter but higher than a year ago, while operating cash flow remained negative.
- Revenue increased from a year ago, yet operating cash flow stayed negative, resulting in a negative free cash flow margin that widened compared to the prior year. The conversion from revenue to cash was weaker than the preceding quarter, which had generated positive operating cash flow.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow shifted from positive to negative, and free cash flow turned from a surplus to a deficit, with the margin weakening significantly. Versus the same quarter one year earlier, revenue was higher but free cash flow was more negative, as capital expenditure increased substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$859.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$250.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$117.0M
Cash generated by operations before capital spending.
CapEx
$133.0M
Capital spending and related asset purchases.
FCF margin
-6.8%
The share of revenue converted into free cash flow.
TTM FCF yield
5.6%
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 | $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% |
| 2026-04-04 | $3.7B | -$117.0M | $133.0M | -$250.0M | -6.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -113.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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 Swing
The most significant observable driver was the shift in operating cash flow from a large positive figure in the prior quarter to a negative figure in the current quarter. This change was the primary reason for the free cash flow deficit.
The negative operating cash flow more than offset any reduction in capital expenditure, causing free cash flow to worsen compared to both the prior quarter and the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from a year ago, yet operating cash flow stayed negative, resulting in a negative free cash flow margin that widened compared to the prior year. The conversion from revenue to cash was weaker than the preceding quarter, which had generated positive operating cash flow.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow shifted from positive to negative, and free cash flow turned from a surplus to a deficit, with the margin weakening significantly. Versus the same quarter one year earlier, revenue was higher but free cash flow was more negative, as capital expenditure increased substantially.
Monitor the level of capital expenditure, which rose from both the prior quarter and the year-ago period, given its direct impact on free cash flow when operating cash flow is negative.
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 | $15.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.6% | 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.