Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to the immediately preceding quarter but was lower than the same quarter one year earlier. Operating cash flow increased sequentially while revenue decreased slightly, and capital expenditure rose from the prior quarter but fell from the prior year period.
- Revenue was stable from the prior year quarter but slightly lower sequentially. Operating cash flow was higher than the previous quarter but lower than the year ago period, driving free cash flow margin to be improved versus the immediately preceding quarter and weakened compared to the same quarter last year.
- Compared to the preceding quarter, both operating cash flow and free cash flow were higher, and free cash flow margin strengthened. Versus the year ago quarter, operating cash flow and free cash flow were lower, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$661.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$793.0M
Cash generated by operations before capital spending.
CapEx
$132.0M
Capital spending and related asset purchases.
FCF margin
18.1%
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 | $3.9B | $287.0M | $153.0M | $134.0M | 3.4% |
| 2024-06-30 | $4.0B | $440.0M | $90.0M | $350.0M | 8.8% |
| 2024-09-29 | $3.9B | $249.0M | $59.0M | $190.0M | 4.9% |
| 2024-12-29 | $3.7B | $793.0M | $132.0M | $661.0M | 18.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 225.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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 Variability
Operating cash flow showed a significant sequential increase from the prior quarter, but remained below the level of the same quarter last year. This movement was the strongest observable change across the metrics supplied.
Given the stable revenue profile, continued monitoring of operating cash flow conversion will be key to assessing free cash flow sustainability.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable from the prior year quarter but slightly lower sequentially. Operating cash flow was higher than the previous quarter but lower than the year ago period, driving free cash flow margin to be improved versus the immediately preceding quarter and weakened compared to the same quarter last year.
Compared to the preceding quarter, both operating cash flow and free cash flow were higher, and free cash flow margin strengthened. Versus the year ago quarter, operating cash flow and free cash flow were lower, and free cash flow margin weakened.
Monitor operating cash flow relative to revenue, as the current period's conversion rate was higher sequentially but lower than the year ago quarter.