Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow, revenue, and free cash flow margin all improved sequentially and compared to the same quarter last year. Capital expenditure remained relatively stable across all periods.
- Revenue was higher than the prior quarter and the year-ago quarter, while operating cash flow increased at a faster pace, leading to a higher free cash flow margin in the current quarter.
- Free cash flow margin was higher than both the immediately preceding quarter and the same quarter one year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$664.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$380.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$434.0M
Cash generated by operations before capital spending.
CapEx
$54.0M
Capital spending and related asset purchases.
FCF margin
20.1%
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 |
|---|---|---|---|---|---|
| 2023-09-29 | $1.5B | $127.0M | $70.0M | $57.0M | 3.9% |
| 2023-12-29 | $1.6B | $169.0M | $70.0M | $99.0M | 6.4% |
| 2024-03-29 | $1.7B | $188.0M | $60.0M | $128.0M | 7.7% |
| 2024-06-28 | $1.9B | $434.0M | $54.0M | $380.0M | 20.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.3B | 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 improved significantly compared to both the prior quarter and the year-ago quarter, while capital expenditure showed minimal change.
Stronger cash generation from operations was the primary factor behind the higher free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the year-ago quarter, while operating cash flow increased at a faster pace, leading to a higher free cash flow margin in the current quarter.
Free cash flow margin was higher than both the immediately preceding quarter and the same quarter one year earlier.
Monitor whether capital expenditure increases in future quarters relative to its recent stable level.