Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow improved sequentially and year-over-year, resulting in free cash flow growth. The free cash flow margin strengthened from the prior quarter and remained near the level from the same quarter last year.
- Operating cash flow rose markedly while capital expenditure remained modest, leading to a sharp increase in free cash flow. The free cash flow margin improved significantly from the previous quarter.
- Compared with the preceding quarter, revenue, operating cash flow, and free cash flow all increased, with operating cash flow rising sharply. Versus the same quarter one year ago, free cash flow was slightly higher and the margin remained stable.
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
$318.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$326.0M
Cash generated by operations before capital spending.
CapEx
$8.0M
Capital spending and related asset purchases.
FCF margin
32.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-09-27 | $974.0M | $158.0M | $2.0M | $156.0M | 16.0% |
| 2024-12-27 | $986.0M | $326.0M | $8.0M | $318.0M | 32.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 200.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.6B | 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 rose substantially compared to the prior quarter, marking the primary driver behind the improvement in free cash flow. Revenue also contributed with a moderate increase.
The higher operating cash flow enabled free cash flow to grow and the margin to recover from the prior quarter's lower level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose markedly while capital expenditure remained modest, leading to a sharp increase in free cash flow. The free cash flow margin improved significantly from the previous quarter.
Compared with the preceding quarter, revenue, operating cash flow, and free cash flow all increased, with operating cash flow rising sharply. Versus the same quarter one year ago, free cash flow was slightly higher and the margin remained stable.
Monitor whether operating cash flow can sustain its elevated level, given the sequential volatility observed.