Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both rose from the preceding quarter, while free cash flow increased due to higher operating cash flow despite a larger capital expenditure. Compared to the same quarter one year earlier, revenue was higher but free cash flow was lower because operating cash flow weakened and capital expenditure increased.
- Free cash flow margin was higher than the preceding quarter, reflecting improved conversion of revenue into free cash flow. Compared to the same quarter one year earlier, the margin was lower, indicating weaker cash conversion efficiency.
- Versus the preceding quarter, revenue, operating cash flow, and free cash flow were all higher. Versus the same quarter one year earlier, revenue and capital expenditure were higher, but operating cash flow and free cash flow were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$399.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$483.9M
Cash generated by operations before capital spending.
CapEx
$84.7M
Capital spending and related asset purchases.
FCF margin
21.9%
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 | $1.4B | $435.3M | $33.2M | $402.1M | 29.1% |
| 2024-06-29 | $1.5B | $255.3M | $37.2M | $218.2M | 14.5% |
| 2024-09-28 | $1.6B | $258.0M | $38.5M | $219.4M | 13.8% |
| 2024-12-28 | $1.8B | $483.9M | $84.7M | $399.2M | 21.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | 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 weakened year-over-year
Despite higher revenue, operating cash flow was lower than the same quarter one year earlier. This was the strongest observable factor in the free cash flow decline versus the prior year.
The lower operating cash flow, combined with increased capital expenditure, drove free cash flow lower year-over-year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow margin was higher than the preceding quarter, reflecting improved conversion of revenue into free cash flow. Compared to the same quarter one year earlier, the margin was lower, indicating weaker cash conversion efficiency.
Versus the preceding quarter, revenue, operating cash flow, and free cash flow were all higher. Versus the same quarter one year earlier, revenue and capital expenditure were higher, but operating cash flow and free cash flow were lower.
Monitor whether the higher capital expenditure persists relative to the prior year and its ongoing impact on free cash flow generation.