Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose sharply versus both the prior quarter and the year-ago quarter, yet operating cash flow turned negative, driving free cash flow deeply negative. The cash conversion weakened significantly due to a large receivable and transaction-related payments disclosed in the filing.
- Revenue was higher, but operating cash flow was negative, resulting in a negative free cash flow and a negative free cash flow margin. This indicates a sharp deterioration in cash conversion compared to the prior periods.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow turned from positive to negative. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin all weakened substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
-$42.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$3.0M
Cash generated by operations before capital spending.
CapEx
$39.0M
Capital spending and related asset purchases.
FCF margin
-3.3%
The share of revenue converted into free cash flow.
TTM FCF yield
n/a
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 | $771.3M | $40.7M | n/a | n/a | n/a |
| 2025-09-27 | $799.9M | $187.3M | n/a | n/a | n/a |
| 2025-12-31 | $932.4M | $164.6M | n/a | n/a | n/a |
| 2026-04-04 | $1.3B | -$3.0M | $39.0M | -$42.0M | -3.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 58.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | 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.
Negative Operating Cash Flow
Operating cash flow turned negative despite higher revenue, driven by a large receivable from BD and payments for transaction and integration costs related to the BDS Business Acquisition, as described in the filing.
This driver caused free cash flow to be negative and the free cash flow margin to be negative, a significant weakening from prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, but operating cash flow was negative, resulting in a negative free cash flow and a negative free cash flow margin. This indicates a sharp deterioration in cash conversion compared to the prior periods.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow turned from positive to negative. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin all weakened substantially.
Monitor the collection of the receivable from BD and the trajectory of transaction and integration costs, as these were cited as primary factors in the cash flow decline.
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 | $36.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | 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.