Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Operating cash flow improved from the prior quarter but was lower than a year ago, leading to a mixed free cash flow margin trend.
- Operating cash flow relative to revenue was higher than the prior quarter, and capital expenditure was slightly lower, resulting in stronger free cash flow and margin. Compared to a year ago, operating cash flow conversion was weaker despite higher revenue.
- Sequentially, free cash flow and margin improved significantly. Year-over-year, free cash flow and margin declined, as operating cash flow decreased more than the revenue increase.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$667.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$227.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$270.1M
Cash generated by operations before capital spending.
CapEx
$43.0M
Capital spending and related asset purchases.
FCF margin
10.4%
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 | $2.1B | $311.9M | $92.3M | $219.6M | 10.4% |
| 2024-03-30 | $2.2B | $119.8M | $48.8M | $71.0M | 3.3% |
| 2024-06-29 | $2.2B | $197.7M | $47.5M | $150.2M | 6.7% |
| 2024-09-28 | $2.2B | $270.1M | $43.0M | $227.1M | 10.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 125.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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.
Operating cash flow performance
Operating cash flow increased substantially from the prior quarter, driving free cash flow improvement. However, it remained below the level achieved a year ago.
The quarter's free cash flow generation was supported by stronger cash conversion, but the year-over-year decline warrants attention.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow relative to revenue was higher than the prior quarter, and capital expenditure was slightly lower, resulting in stronger free cash flow and margin. Compared to a year ago, operating cash flow conversion was weaker despite higher revenue.
Sequentially, free cash flow and margin improved significantly. Year-over-year, free cash flow and margin declined, as operating cash flow decreased more than the revenue increase.
Monitor the trajectory of free cash flow margin, which declined from the prior year despite revenue growth.