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 compared to the prior quarter, while free cash flow margin strengthened. Versus the same quarter last year, operating cash flow and free cash flow were lower, and the margin weakened.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than a year ago. After deducting capital expenditure, free cash flow margin followed the same pattern, reflecting a mixed conversion trend relative to revenue.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased. Compared to the same quarter one year earlier, revenue was slightly higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$541.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$149.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$174.2M
Cash generated by operations before capital spending.
CapEx
$24.5M
Capital spending and related asset purchases.
FCF margin
20.5%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $649.9M | $147.6M | $17.8M | $129.7M | 20.0% |
| 2024-06-30 | $691.7M | $158.6M | $22.0M | $136.6M | 19.7% |
| 2024-09-29 | $684.0M | $147.9M | $22.3M | $125.6M | 18.4% |
| 2024-12-29 | $729.4M | $174.2M | $24.5M | $149.8M | 20.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 158.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | 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 growth
Operating cash flow increased from the prior quarter, contributing to a higher free cash flow. This was the strongest observable driver of the quarter's cash generation improvement.
The rise in operating cash flow directly supported a higher free cash flow and margin compared to 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 prior quarter but lower than a year ago. After deducting capital expenditure, free cash flow margin followed the same pattern, reflecting a mixed conversion trend relative to revenue.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased. Compared to the same quarter one year earlier, revenue was slightly higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trend in free cash flow margin, which improved sequentially but remained below the level of the same quarter last year.