Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened from the prior quarter but improved compared to the same quarter last year. Revenue was higher than both the preceding quarter and the year-ago quarter.
- Revenue increased while operating cash flow declined, resulting in a lower free cash flow and margin. Capital expenditure was higher than the prior quarter but similar to the year-ago level.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by a decrease in operating cash flow and an increase in capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by higher operating cash flow.
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
$208.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$294.0M
Cash generated by operations before capital spending.
CapEx
$86.0M
Capital spending and related asset purchases.
FCF margin
4.8%
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 |
|---|---|---|---|---|---|
| 2024-03-29 | $4.0B | $113.0M | $17.0M | $96.0M | 2.4% |
| 2024-06-28 | $4.1B | $381.0M | $23.0M | $358.0M | 8.7% |
| 2024-09-27 | $4.2B | $647.0M | $23.0M | $624.0M | 15.0% |
| 2025-01-03 | $4.3B | $294.0M | $86.0M | $208.0M | 4.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 73.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 Decline
Operating cash flow was lower than the prior quarter, while revenue was higher. This divergence is the strongest observable driver of the quarter's weaker free cash flow.
The lower operating cash flow reduced free cash flow and margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow declined, resulting in a lower free cash flow and margin. Capital expenditure was higher than the prior quarter but similar to the year-ago level.
Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by a decrease in operating cash flow and an increase in capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by higher operating cash flow.
Monitor the trend in operating cash flow, which declined from the prior quarter despite higher revenue.