Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter as operating cash flow grew more than capital expenditure. Compared to the same quarter last year, free cash flow was higher despite a larger revenue base.
- Revenue was higher, and operating cash flow grew faster than revenue, producing a stronger free cash flow margin. Capital expenditure was modestly higher but operating cash flow more than offset the increase.
- Relative to the prior quarter, operating cash flow and free cash flow margin both improved significantly. Versus the year-ago quarter, revenue was higher and free cash flow margin was stable, with operating cash flow higher and capital expenditure essentially flat.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$685.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$150.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$221.0M
Cash generated by operations before capital spending.
CapEx
$71.0M
Capital spending and related asset purchases.
FCF margin
6.5%
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 |
|---|---|---|---|---|---|
| 2024-03-29 | $1.7B | $188.0M | $60.0M | $128.0M | 7.7% |
| 2024-06-28 | $1.9B | $434.0M | $54.0M | $380.0M | 20.1% |
| 2024-09-27 | $2.2B | $95.0M | $68.0M | $27.0M | 1.2% |
| 2024-12-27 | $2.3B | $221.0M | $71.0M | $150.0M | 6.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 44.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.4B | 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 the strongest observable driver, growing substantially from both the prior quarter and the year-ago period. It was the primary factor behind the improvement in free cash flow and margin.
The increase in operating cash flow directly lifted free cash flow and margin compared to both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, and operating cash flow grew faster than revenue, producing a stronger free cash flow margin. Capital expenditure was modestly higher but operating cash flow more than offset the increase.
Relative to the prior quarter, operating cash flow and free cash flow margin both improved significantly. Versus the year-ago quarter, revenue was higher and free cash flow margin was stable, with operating cash flow higher and capital expenditure essentially flat.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in upcoming quarters.