Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased both sequentially and year-over-year. Free cash flow turned positive from a negative year-ago level, though the margin narrowed from the prior quarter.
- Operating cash flow was higher than the year-ago quarter but lower than the prior quarter. Capital expenditure remained relatively stable, leading to free cash flow that was positive and higher than the year-ago period but lower than the prior quarter.
- Compared to the prior quarter, revenue improved while operating cash flow and free cash flow declined, resulting in a lower free cash flow margin. Compared to the same quarter a year ago, all metrics improved significantly, with free cash flow turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$599.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$672.0M
Cash generated by operations before capital spending.
CapEx
$73.0M
Capital spending and related asset purchases.
FCF margin
21.3%
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 |
|---|---|---|---|---|---|
| 2024-12-27 | $2.4B | $403.0M | $116.0M | $287.0M | 11.9% |
| 2025-03-28 | $2.3B | $508.0M | $129.0M | $379.0M | 16.5% |
| 2025-06-27 | $2.6B | $746.0M | $71.0M | $675.0M | 25.9% |
| 2025-10-03 | $2.8B | $672.0M | $73.0M | $599.0M | 21.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 50.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue increased compared to both the prior quarter and the year-ago quarter. This supported higher free cash flow despite a slight decrease in operating cash flow from the prior quarter.
The revenue increase was the primary factor enabling the company to generate positive free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the year-ago quarter but lower than the prior quarter. Capital expenditure remained relatively stable, leading to free cash flow that was positive and higher than the year-ago period but lower than the prior quarter.
Compared to the prior quarter, revenue improved while operating cash flow and free cash flow declined, resulting in a lower free cash flow margin. Compared to the same quarter a year ago, all metrics improved significantly, with free cash flow turning from negative to positive.
Monitor the trend in operating cash flow given its sequential decline despite revenue growth.