Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by a substantial increase in operating cash flow. The free cash flow margin widened significantly compared to both periods.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose substantially, and with capital expenditure also higher, free cash flow increased markedly, resulting in a stronger free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$677.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$738.4M
Cash generated by operations before capital spending.
CapEx
$61.2M
Capital spending and related asset purchases.
FCF margin
31.6%
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 | $1.6B | $121.0M | $39.9M | $81.1M | 5.2% |
| 2024-06-29 | $1.5B | $277.3M | $33.4M | $243.9M | 16.1% |
| 2024-09-28 | $1.7B | $97.2M | $41.7M | $55.5M | 3.2% |
| 2024-12-28 | $2.1B | $738.4M | $61.2M | $677.2M | 31.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 227.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $798.1M | 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 was substantially higher than both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow.
The increase in operating cash flow drove a higher free cash flow and an improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose substantially, and with capital expenditure also higher, free cash flow increased markedly, resulting in a stronger free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were higher, and the free cash flow margin improved.
Monitor whether the elevated capital expenditure level persists in future quarters, as it was higher than both the prior quarter and the year-ago quarter.