Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially despite lower revenue, but was lower than the same quarter last year. The free cash flow margin strengthened from the prior quarter.
- The free cash flow margin rose from the prior quarter, driven by higher operating cash flow relative to revenue. Capital expenditure remained stable.
- Compared to the prior quarter, revenue was lower but free cash flow and its margin were higher. Compared to the same quarter last year, both revenue and operating cash flow were lower, resulting in a lower free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$760.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$240.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$259.8M
Cash generated by operations before capital spending.
CapEx
$19.3M
Capital spending and related asset purchases.
FCF margin
21.8%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $757.3M | $177.8M | $22.1M | $155.7M | 20.6% |
| 2024-06-30 | $995.3M | $187.3M | $27.4M | $159.9M | 16.1% |
| 2024-09-29 | $1.3B | $222.5M | $18.4M | $204.1M | 15.9% |
| 2024-12-29 | $1.1B | $259.8M | $19.3M | $240.5M | 21.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -701.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 Improvement
Despite lower revenue, operating cash flow increased from the prior quarter, boosting free cash flow and margin.
The improvement in cash generation relative to revenue underscores operational efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin rose from the prior quarter, driven by higher operating cash flow relative to revenue. Capital expenditure remained stable.
Compared to the prior quarter, revenue was lower but free cash flow and its margin were higher. Compared to the same quarter last year, both revenue and operating cash flow were lower, resulting in a lower free cash flow margin.
Monitor the trajectory of revenue given its decline from both the prior quarter and the year-ago period.