Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply from the prior quarter and the year-ago quarter, driving a significant increase in free cash flow. The free cash flow margin expanded compared to both periods, reflecting stronger cash conversion relative to revenue.
- Revenue was higher than both the prior quarter and the year-ago quarter, while operating cash flow rose more than proportionally, resulting in a higher free cash flow margin. Capital expenditure was lower than the year-ago quarter but slightly higher than the prior quarter, supporting the improvement in free cash flow.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics improved: revenue was higher, operating cash flow and free cash flow were higher, and the free cash flow margin expanded.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$358.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$381.0M
Cash generated by operations before capital spending.
CapEx
$23.0M
Capital spending and related asset purchases.
FCF margin
8.7%
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 |
|---|---|---|---|---|---|
| 2023-09-29 | $3.9B | $795.0M | $50.0M | $745.0M | 19.1% |
| 2023-12-29 | $4.0B | $326.0M | $78.0M | $248.0M | 6.3% |
| 2024-03-29 | $4.0B | $113.0M | $17.0M | $96.0M | 2.4% |
| 2024-06-28 | $4.1B | $381.0M | $23.0M | $358.0M | 8.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 110.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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 Strength
Operating cash flow was the strongest observable driver, rising sharply from both the prior quarter and the year-ago quarter. This directly supported the increase in free cash flow and the expansion of the free cash flow margin.
The higher operating cash flow was the primary factor behind the improved free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, while operating cash flow rose more than proportionally, resulting in a higher free cash flow margin. Capital expenditure was lower than the year-ago quarter but slightly higher than the prior quarter, supporting the improvement in free cash flow.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics improved: revenue was higher, operating cash flow and free cash flow were higher, and the free cash flow margin expanded.
Monitor the trend in capital expenditure, as it was slightly higher than the prior quarter but lower than the year-ago quarter, which could affect future free cash flow conversion.