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 both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. Revenue was stable versus the prior quarter and higher than a year ago.
- Revenue held steady from the prior quarter, while operating cash flow rose, capital expenditure declined, and free cash flow increased, leading to a higher free cash flow margin. The conversion of revenue into free cash flow strengthened sequentially and year-over-year.
- Compared to the immediately preceding quarter, revenue was stable, operating cash flow and free cash flow were higher, capital expenditure was lower, and free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were higher, capital expenditure was lower, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$702.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$780.0M
Cash generated by operations before capital spending.
CapEx
$78.0M
Capital spending and related asset purchases.
FCF margin
13.3%
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 |
|---|---|---|---|---|---|
| 2023-12-29 | $5.3B | $789.0M | $137.0M | $652.0M | 12.2% |
| 2024-03-29 | $5.2B | -$104.0M | $115.0M | -$219.0M | -4.2% |
| 2024-06-28 | $5.3B | $754.0M | $97.0M | $657.0M | 12.4% |
| 2024-09-27 | $5.3B | $780.0M | $78.0M | $702.0M | 13.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 175.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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 uplift
Operating cash flow increased relative to both the prior quarter and the same quarter last year, while capital expenditure moved lower in both comparisons. This combination drove free cash flow and margin higher.
The higher operating cash flow and lower capital expenditure together produced the strongest observable positive effect on free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue held steady from the prior quarter, while operating cash flow rose, capital expenditure declined, and free cash flow increased, leading to a higher free cash flow margin. The conversion of revenue into free cash flow strengthened sequentially and year-over-year.
Compared to the immediately preceding quarter, revenue was stable, operating cash flow and free cash flow were higher, capital expenditure was lower, and free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were higher, capital expenditure was lower, and free cash flow margin improved.
Monitor the trajectory of capital expenditure, which declined from both the prior quarter and the year-ago quarter.