Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved sequentially and versus the prior year, yielding a significantly higher free cash flow than the previous quarter. The free cash flow margin remained stable compared to the same quarter one year earlier.
- Operating cash flow as a proportion of revenue was higher than the previous quarter, leading to a stronger free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, supporting the conversion.
- Compared to the prior quarter, all metrics improved, with operating cash flow and free cash flow significantly higher. Versus the same quarter one year ago, revenue and operating cash flow were higher, while free cash flow and free cash flow margin were marginally lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$702.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$759.0M
Cash generated by operations before capital spending.
CapEx
$57.0M
Capital spending and related asset purchases.
FCF margin
25.2%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $2.8B | $1.2B | $81.0M | $1.2B | 40.9% |
| 2024-03-30 | $2.4B | $382.0M | $46.0M | $336.0M | 14.1% |
| 2024-06-29 | $2.6B | $180.0M | $68.0M | $112.0M | 4.3% |
| 2024-09-28 | $2.8B | $759.0M | $57.0M | $702.0M | 25.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.6B | 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 surge
Operating cash flow increased substantially from the previous quarter, far outpacing the change in revenue. This was the strongest observable driver of the quarter's free cash flow.
The higher operating cash flow directly lifted free cash flow and margin to levels well above the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the previous quarter, leading to a stronger free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, supporting the conversion.
Compared to the prior quarter, all metrics improved, with operating cash flow and free cash flow significantly higher. Versus the same quarter one year ago, revenue and operating cash flow were higher, while free cash flow and free cash flow margin were marginally lower.
Monitor whether the sequential improvement in operating cash flow is sustained in future periods.