Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin rose to a level well above the prior periods.
- Revenue was stable compared to a year ago and higher than the prior quarter. Operating cash flow increased relative to both periods, while capital expenditure decreased year over year and was similar to the prior quarter. The combination produced a free cash flow margin that was higher than both the preceding quarter and the same quarter one year earlier.
- Compared to the prior quarter, free cash flow and free cash flow margin were higher, with operating cash flow improving and capital expenditure remaining similar. Versus the same quarter last year, free cash flow and margin were also higher, supported by stronger operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$567.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$695.3M
Cash generated by operations before capital spending.
CapEx
$128.0M
Capital spending and related asset purchases.
FCF margin
19.0%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $2.7B | $757.6M | $222.5M | $535.1M | 20.1% |
| 2024-03-31 | $3.3B | $569.1M | $213.3M | $355.8M | 10.9% |
| 2024-06-30 | $2.1B | $325.6M | $130.2M | $195.5M | 9.4% |
| 2024-09-29 | $3.0B | $695.3M | $128.0M | $567.3M | 19.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 127.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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.
Free Cash Flow Margin Improvement
The free cash flow margin increased compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure relative to revenue.
This improvement strengthened the company's cash generation efficiency during the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to a year ago and higher than the prior quarter. Operating cash flow increased relative to both periods, while capital expenditure decreased year over year and was similar to the prior quarter. The combination produced a free cash flow margin that was higher than both the preceding quarter and the same quarter one year earlier.
Compared to the prior quarter, free cash flow and free cash flow margin were higher, with operating cash flow improving and capital expenditure remaining similar. Versus the same quarter last year, free cash flow and margin were also higher, supported by stronger operating cash flow and lower capital expenditure.
The filing notes business realignment costs and a recent acquisition; monitor their impact on future operating profit and cash flows.