Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow conversion improved relative to the prior year, with revenue unchanged from the preceding quarter. Free cash flow margin increased from the year-ago quarter, supported by higher operating cash flow.
- Revenue was stable versus the prior quarter. Operating cash flow was lower, while capital expenditure decreased, resulting in a lower free cash flow and a weaker free cash flow margin.
- Compared with the prior year quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher, leading to an improved free cash flow margin. Versus the preceding quarter, revenue was stable, operating cash flow was lower, capital expenditure was lower, free cash flow was lower, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$170.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$182.0M
Cash generated by operations before capital spending.
CapEx
$12.0M
Capital spending and related asset purchases.
FCF margin
12.0%
The share of revenue converted into free cash flow.
TTM FCF yield
4.7%
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 |
|---|---|---|---|---|---|
| 2025-07-04 | $1.4B | $339.0M | $16.0M | $323.0M | 23.6% |
| 2025-10-03 | $1.4B | $270.0M | $12.0M | $258.0M | 18.4% |
| 2025-12-31 | $1.4B | $311.0M | $20.0M | $291.0M | 20.8% |
| 2026-04-03 | $1.4B | $182.0M | $12.0M | $170.0M | 12.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash flow improvement
Operating cash flow rose compared to the same quarter last year while capital expenditure declined, producing a higher free cash flow and an improved free cash flow margin.
The free cash flow margin strengthened against the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter. Operating cash flow was lower, while capital expenditure decreased, resulting in a lower free cash flow and a weaker free cash flow margin.
Compared with the prior year quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher, leading to an improved free cash flow margin. Versus the preceding quarter, revenue was stable, operating cash flow was lower, capital expenditure was lower, free cash flow was lower, and free cash flow margin weakened.
Monitor operating cash flow stability, as the current level decreased from the preceding quarter despite stable revenue.
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 | $22.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.7% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 22.6x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.