Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved sequentially and year-over-year. The free cash flow margin strengthened versus both the prior quarter and the same quarter one year earlier.
- Revenue growth combined with operating cash flow generation that outpaced the revenue increase drove a higher free cash flow margin. Capital expenditure was lower than the year-ago quarter, further supporting free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, with the free cash flow margin slightly improved. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were markedly higher, while capital expenditure was lower, resulting in a meaningfully higher free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$653.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$745.0M
Cash generated by operations before capital spending.
CapEx
$92.0M
Capital spending and related asset purchases.
FCF margin
21.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2026-01-02 | $3.0B | $745.0M | $92.0M | $653.0M | 21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 35.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Growth
Operating cash flow increased both sequentially and year-over-year at a pace that exceeded revenue growth, leading to a structurally higher free cash flow margin.
This stronger cash generation was the primary force behind the improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth combined with operating cash flow generation that outpaced the revenue increase drove a higher free cash flow margin. Capital expenditure was lower than the year-ago quarter, further supporting free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, with the free cash flow margin slightly improved. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were markedly higher, while capital expenditure was lower, resulting in a meaningfully higher free cash flow margin.
Monitor the trend in capital expenditure as it was lower year-over-year but higher sequentially.