Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's free cash flow turned positive and improved compared to both the prior quarter and the same quarter last year, driven by a higher operating cash flow while capital expenditure remained stable. The free cash flow margin also strengthened, reflecting better cash conversion from revenue.
- Revenue was stable relative to the prior quarter, but operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure was modestly higher than the prior quarter but lower than the year-ago level.
- Compared to the preceding quarter, free cash flow and margin improved as operating cash flow rose. Versus the same quarter one year earlier, free cash flow shifted from negative to positive, with operating cash flow markedly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$700.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$168.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$204.0M
Cash generated by operations before capital spending.
CapEx
$36.0M
Capital spending and related asset purchases.
FCF margin
5.3%
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 |
|---|---|---|---|---|---|
| 2024-03-30 | $3.2B | $197.0M | $41.0M | $156.0M | 4.9% |
| 2024-06-29 | $3.1B | $296.0M | $37.0M | $259.0M | 8.3% |
| 2024-09-28 | $3.2B | $151.0M | $34.0M | $117.0M | 3.7% |
| 2024-12-28 | $3.2B | $204.0M | $36.0M | $168.0M | 5.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 178.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | 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 Recovery
Operating cash flow improved substantially from a negative level a year ago to a positive level in the current quarter, while capital expenditure remained relatively stable. This was the primary observable factor behind the improvement in free cash flow and margin.
The increase in operating cash flow directly enabled the company to generate positive free cash flow and a healthy margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to the prior quarter, but operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure was modestly higher than the prior quarter but lower than the year-ago level.
Compared to the preceding quarter, free cash flow and margin improved as operating cash flow rose. Versus the same quarter one year earlier, free cash flow shifted from negative to positive, with operating cash flow markedly higher.
Monitor the impact of year-end inventory forward buy-in opportunities on working capital requirements, as noted in the company's liquidity discussion.