Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was higher than both the prior quarter and the year-ago quarter, but the free cash flow margin weakened significantly. Operating cash flow increased while capital expenditure was higher than the prior quarter but lower than the year-ago quarter.
- Revenue was substantially higher, operating cash flow increased, and capital expenditure was modest relative to revenue, resulting in higher free cash flow but a lower margin.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, while the free cash flow margin was lower. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, capital expenditure was lower, and the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$118.0M
Capital spending and related asset purchases.
FCF margin
4.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-01-03 | $21.3B | $1.1B | $118.0M | $1.0B | 4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 223.2% | 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.
Revenue and cash conversion divergence
Revenue increased substantially, but operating cash flow did not grow proportionally, leading to a weakened free cash flow margin. The combination of higher revenue and lower conversion efficiency is the strongest observable pattern.
Higher free cash flow was achieved but at a lower margin, indicating reduced cash generation efficiency relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was substantially higher, operating cash flow increased, and capital expenditure was modest relative to revenue, resulting in higher free cash flow but a lower margin.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, while the free cash flow margin was lower. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, capital expenditure was lower, and the free cash flow margin was lower.
The company's total backlog increased year over year, and the portion expected to be recognized as revenue in the near term may influence future cash conversion.