Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the previous quarter but lower than the same quarter last year. Free cash flow and free cash flow margin improved substantially versus both prior periods, driven by a combination of higher operating cash flow and lower capital expenditure.
- Operating cash flow exceeded capital expenditure by a wide margin, resulting in a strong free cash flow. The free cash flow margin was higher than both the immediate prior quarter and the year-ago quarter.
- Compared to the previous quarter, revenue and operating cash flow were higher, while capital expenditure also increased but free cash flow improved. Compared to the same quarter last year, revenue and operating cash flow were lower, but capital expenditure was significantly lower, leading to a much higher free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$304.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$465.8M
Cash generated by operations before capital spending.
CapEx
$161.7M
Capital spending and related asset purchases.
FCF margin
17.3%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $2.0B | $611.2M | $354.0M | $257.2M | 12.7% |
| 2024-03-29 | $1.9B | $498.7M | $233.9M | $264.8M | 14.2% |
| 2024-06-28 | $1.7B | $362.2M | $141.1M | $221.1M | 12.7% |
| 2024-09-27 | $1.8B | $465.8M | $161.7M | $304.1M | 17.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$909.7M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Reduction
Capital expenditure was lower than the previous quarter and substantially lower than the same quarter last year, contributing to the improvement in free cash flow.
This reduction in capital spending was a primary factor in the free cash flow increase.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure by a wide margin, resulting in a strong free cash flow. The free cash flow margin was higher than both the immediate prior quarter and the year-ago quarter.
Compared to the previous quarter, revenue and operating cash flow were higher, while capital expenditure also increased but free cash flow improved. Compared to the same quarter last year, revenue and operating cash flow were lower, but capital expenditure was significantly lower, leading to a much higher free cash flow.
Monitor the level of capital expenditure, which materially decreased from the year-ago quarter.