Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow for the most recent quarter were higher compared to both the preceding quarter and the same quarter one year ago. Revenue was slightly lower sequentially but meaningfully higher year-over-year, contributing to an improved free cash flow margin.
- Revenue was lower than the prior quarter, but operating cash flow increased, indicating a higher cash conversion rate from revenue. Capital expenditure rose moderately, yet free cash flow still improved sequentially, and the free cash flow margin strengthened.
- Compared to the immediately preceding quarter, revenue was modestly lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, revenue turned from negative to positive, operating cash flow was substantially higher, and free cash flow reversed from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$854.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$379.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$508.0M
Cash generated by operations before capital spending.
CapEx
$129.0M
Capital spending and related asset purchases.
FCF margin
16.5%
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 | $2.0B | $366.0M | $116.0M | $250.0M | 12.5% |
| 2024-09-27 | $2.2B | $34.0M | $96.0M | -$62.0M | -2.8% |
| 2024-12-27 | $2.4B | $403.0M | $116.0M | $287.0M | 11.9% |
| 2025-03-28 | $2.3B | $508.0M | $129.0M | $379.0M | 16.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 72.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger Operating Cash Flow
Operating cash flow for the current quarter was substantially higher than both the prior quarter and the year-ago quarter, even as revenue declined slightly from the prior quarter. This drove an improvement in free cash flow and margin.
Higher operating cash flow was the primary factor behind the increase in free cash flow and the expansion of free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, but operating cash flow increased, indicating a higher cash conversion rate from revenue. Capital expenditure rose moderately, yet free cash flow still improved sequentially, and the free cash flow margin strengthened.
Compared to the immediately preceding quarter, revenue was modestly lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, revenue turned from negative to positive, operating cash flow was substantially higher, and free cash flow reversed from negative to positive.
Monitor whether the revenue trend continues to hold at a higher level compared to prior periods, as this quarter's cash flow improvement coincided with a shift from negative revenue in the year-ago quarter.