Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In this quarter, free cash flow was higher than the same quarter one year earlier but lower than the immediately preceding quarter. Revenue remained stable sequentially and increased year-over-year.
- The company converted a portion of its revenue into operating cash flow, which after minimal capital expenditure resulted in free cash flow. The free cash flow margin was positive, reflecting the efficiency of cash generation relative to revenue.
- Compared to the immediately preceding quarter, free cash flow was lower despite stable revenue, primarily due to lower operating cash flow. Compared to the same quarter one year earlier, free cash flow improved, supported by higher revenue and higher operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$262.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$264.0M
Cash generated by operations before capital spending.
CapEx
$2.0M
Capital spending and related asset purchases.
FCF margin
27.2%
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 |
|---|---|---|---|---|---|
| 2023-09-29 | $945.0M | $125.0M | $5.0M | $120.0M | 12.7% |
| 2023-12-29 | $948.0M | $315.0M | $8.0M | $307.0M | 32.4% |
| 2024-03-29 | $964.0M | $1.4B | $3.0M | $1.4B | 144.7% |
| 2024-06-28 | $965.0M | $264.0M | $2.0M | $262.0M | 27.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.9B | 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
Operating cash flow was the primary component of free cash flow in the quarter. It was higher than the same quarter last year but lower than the prior quarter, directly influencing the overall free cash flow performance.
Changes in operating cash flow directly determine the level of free cash flow and affect the company’s capacity to fund investments and shareholder returns.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a portion of its revenue into operating cash flow, which after minimal capital expenditure resulted in free cash flow. The free cash flow margin was positive, reflecting the efficiency of cash generation relative to revenue.
Compared to the immediately preceding quarter, free cash flow was lower despite stable revenue, primarily due to lower operating cash flow. Compared to the same quarter one year earlier, free cash flow improved, supported by higher revenue and higher operating cash flow.
Monitor the trajectory of operating cash flow, as it is the main driver of free cash flow and exhibited a significant sequential decline.