Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter a year earlier. Operating cash flow improved sequentially but declined year-over-year, leading to a mixed free cash flow margin performance.
- Revenue rose, and operating cash flow grew more than proportionally from the prior quarter, resulting in a higher free cash flow margin. However, compared to the year-ago period, operating cash flow was lower despite higher revenue, causing the free cash flow margin to weaken.
- Sequentially, free cash flow and margin improved, driven by a stronger operating cash flow relative to revenue. Year-over-year, free cash flow and margin declined, as the increase in revenue was more than offset by a lower operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$984.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$86.0M
Capital spending and related asset purchases.
FCF margin
32.7%
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 |
|---|---|---|---|---|---|
| 2024-03-30 | $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% |
| 2024-12-31 | $3.0B | $1.1B | $86.0M | $984.0M | 32.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 161.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.9B | 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 Improvement
Operating cash flow increased significantly from the prior quarter, outpacing the rise in revenue and capital expenditure, which led to an expansion in free cash flow margin.
The sequential improvement in operating cash flow was the most notable change behind the increase in free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose, and operating cash flow grew more than proportionally from the prior quarter, resulting in a higher free cash flow margin. However, compared to the year-ago period, operating cash flow was lower despite higher revenue, causing the free cash flow margin to weaken.
Sequentially, free cash flow and margin improved, driven by a stronger operating cash flow relative to revenue. Year-over-year, free cash flow and margin declined, as the increase in revenue was more than offset by a lower operating cash flow.
The year-over-year decline in operating cash flow, despite revenue growth, is a key metric to monitor in subsequent quarters.