Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved versus both the preceding quarter and the year-ago quarter, lifting free cash flow and the free cash flow margin. The sequential rise in revenue contributed to the stronger cash conversion.
- Revenue increased compared with both the prior quarter and the same quarter a year earlier. Operating cash flow rose at a faster pace than revenue, resulting in a higher free cash flow margin. Capital expenditure remained stable in relation to the scale of operations.
- Compared with the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, each of these metrics was also higher. Revenue was higher in both comparisons.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$110.6M
Capital spending and related asset purchases.
FCF margin
35.0%
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 |
|---|---|---|---|---|---|
| 2023-12-24 | $3.8B | $1.5B | $115.3M | $1.3B | 35.6% |
| 2024-03-31 | $3.8B | $1.4B | $103.7M | $1.3B | 33.8% |
| 2024-06-30 | $3.9B | $862.4M | $100.7M | $761.7M | 19.7% |
| 2024-09-29 | $4.2B | $1.6B | $110.6M | $1.5B | 35.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 130.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | 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 increased sharply from both the prior quarter and the year-ago quarter. The filing notes that changes in operating asset and liability accounts, including an increase in deferred gross profit, provided cash. This was the strongest observable driver of free cash flow improvement.
The higher operating cash flow directly lifted free cash flow and expanded the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared with both the prior quarter and the same quarter a year earlier. Operating cash flow rose at a faster pace than revenue, resulting in a higher free cash flow margin. Capital expenditure remained stable in relation to the scale of operations.
Compared with the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, each of these metrics was also higher. Revenue was higher in both comparisons.
Monitor the gap between operating cash flow and net income, as deferred gross profit was a significant source of cash in the current quarter.