Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved relative to both the immediately preceding quarter and the same quarter one year earlier, driven by higher operating cash flow. Capital expenditure was higher than the prior quarter but lower than the year-ago period.
- Revenue was stable compared with the prior quarter and slightly higher than a year earlier. Operating cash flow rose significantly from the prior quarter and also increased year-over-year, which, together with moderate capital expenditure, resulted in higher free cash flow and an improved free cash flow margin.
- Compared with the immediately preceding quarter, free cash flow was higher due to a stronger operating cash flow, partially offset by higher capital expenditure. Versus the same quarter one year earlier, free cash flow was also higher, aided by a lower capital expenditure and a modest revenue increase.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$730.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$281.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$351.2M
Cash generated by operations before capital spending.
CapEx
$69.5M
Capital spending and related asset purchases.
FCF margin
12.9%
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 |
|---|---|---|---|---|---|
| 2024-03-30 | $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% |
| 2024-12-28 | $2.2B | $351.2M | $69.5M | $281.7M | 12.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 161.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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.
Stronger operating cash flow
Operating cash flow was the strongest observable driver, increasing significantly from the prior quarter and also rising year-over-year. This directly lifted free cash flow and margin.
Free cash flow margin expanded relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared with the prior quarter and slightly higher than a year earlier. Operating cash flow rose significantly from the prior quarter and also increased year-over-year, which, together with moderate capital expenditure, resulted in higher free cash flow and an improved free cash flow margin.
Compared with the immediately preceding quarter, free cash flow was higher due to a stronger operating cash flow, partially offset by higher capital expenditure. Versus the same quarter one year earlier, free cash flow was also higher, aided by a lower capital expenditure and a modest revenue increase.
Monitor whether capital expenditure remains elevated relative to the prior quarter trend, as it could temper free cash flow conversion in future periods.