Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose versus both the preceding quarter and the year-ago quarter. Operating cash flow and free cash flow improved versus both periods, while free cash flow margin was slightly lower than the prior quarter but higher than a year ago.
- Operating cash flow was materially lower than revenue, reflecting a conversion rate that was stable compared to the prior quarter but improved year-over-year. Capital expenditure rose versus a year ago but fell from the prior quarter, supporting higher free cash flow generation.
- Revenue, operating cash flow, and free cash flow each increased in the current quarter compared to both the immediately preceding quarter and the same quarter one year earlier. Free cash flow margin was slightly weaker than the prior quarter but stronger than the year-ago period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$496.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$628.0M
Cash generated by operations before capital spending.
CapEx
$132.0M
Capital spending and related asset purchases.
FCF margin
7.3%
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 |
|---|---|---|---|---|---|
| 2023-12-30 | $6.2B | $381.0M | $139.0M | $242.0M | 3.9% |
| 2024-03-30 | $5.5B | $521.0M | $142.0M | $379.0M | 6.9% |
| 2024-06-29 | $5.8B | $593.0M | $154.0M | $439.0M | 7.5% |
| 2024-09-28 | $6.8B | $628.0M | $132.0M | $496.0M | 7.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 64.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue increase drives cash improvement
Current quarter revenue was higher than both the prior quarter and the year-ago quarter, providing a larger base from which operating cash flow and free cash flow could rise. Operating cash flow grew sequentially and year-over-year, while capital expenditure remained lower than operating cash flow in each comparison.
Higher revenue directly supports increased free cash flow margins relative to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was materially lower than revenue, reflecting a conversion rate that was stable compared to the prior quarter but improved year-over-year. Capital expenditure rose versus a year ago but fell from the prior quarter, supporting higher free cash flow generation.
Revenue, operating cash flow, and free cash flow each increased in the current quarter compared to both the immediately preceding quarter and the same quarter one year earlier. Free cash flow margin was slightly weaker than the prior quarter but stronger than the year-ago period.
Monitor the relationship between operating cash flow and revenue to see if the improved year-over-year cash conversion rate can be sustained.