Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but weakened compared to the same quarter last year. The cash conversion rate rose from the prior quarter, though it remained below the year-ago level.
- Revenue was stable versus a year ago and higher than the prior quarter. Operating cash flow increased from the preceding quarter but was lower than the year-ago period. Capital expenditure was higher than a year ago but lower than the prior quarter. Free cash flow and free cash flow margin improved sequentially but declined year over year.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and free cash flow margin were lower, as operating cash flow declined and capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.1B
Cash generated by operations before capital spending.
CapEx
$692.9M
Capital spending and related asset purchases.
FCF margin
14.7%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $8.6B | $506.0M | $659.1M | -$153.1M | -1.8% |
| 2024-06-30 | $9.1B | $1.7B | $724.3M | $945.8M | 10.4% |
| 2024-09-29 | $9.1B | $1.5B | $798.2M | $737.4M | 8.1% |
| 2024-12-29 | $9.4B | $2.1B | $692.9M | $1.4B | 14.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 176.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Free Cash Flow Recovery
Free cash flow and free cash flow margin improved from the prior quarter, supported by higher operating cash flow and reduced capital expenditure.
This sequential improvement reversed the prior quarter's lower free cash flow level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus a year ago and higher than the prior quarter. Operating cash flow increased from the preceding quarter but was lower than the year-ago period. Capital expenditure was higher than a year ago but lower than the prior quarter. Free cash flow and free cash flow margin improved sequentially but declined year over year.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and free cash flow margin were lower, as operating cash flow declined and capital expenditure increased.
Monitor the trajectory of operating cash flow relative to revenue, as it declined year over year despite stable revenue.