Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the previous quarter, but operating cash flow and free cash flow declined significantly, reducing the free cash flow margin. Relative to the same quarter one year earlier, revenue, operating cash flow, and free cash flow all improved, and the margin increased.
- The company generated operating cash flow from its revenue, and after investing in capital expenditures, realized free cash flow. The free cash flow margin was lower sequentially but higher than the year-ago period.
- Sequentially, revenue was flat, while operating cash flow and free cash flow were lower, and the margin weakened. Compared to the same quarter last year, all metrics were higher, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$860.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$142.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$157.0M
Cash generated by operations before capital spending.
CapEx
$15.0M
Capital spending and related asset purchases.
FCF margin
10.7%
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 |
|---|---|---|---|---|---|
| 2024-06-28 | $1.3B | $251.0M | $11.0M | $240.0M | 18.6% |
| 2024-09-27 | $1.3B | $224.0M | $9.0M | $215.0M | 16.4% |
| 2024-12-31 | $1.3B | $285.0M | $22.0M | $263.0M | 19.6% |
| 2025-04-04 | $1.3B | $157.0M | $15.0M | $142.0M | 10.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 63.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential decline in operating cash flow
Operating cash flow was substantially lower than the prior quarter despite unchanged revenue, leading to a sharp reduction in free cash flow and margin.
The decline in cash generation from operations is a key factor to monitor in upcoming quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company generated operating cash flow from its revenue, and after investing in capital expenditures, realized free cash flow. The free cash flow margin was lower sequentially but higher than the year-ago period.
Sequentially, revenue was flat, while operating cash flow and free cash flow were lower, and the margin weakened. Compared to the same quarter last year, all metrics were higher, and the margin improved.
The increase in trade receivables and inventories from the prior quarter, as shown in the balance sheet, is a concrete item to monitor.