Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow contracted sharply compared to both the prior quarter and the same quarter last year, driven by weaker operating cash generation. Revenue declined slightly, while capital spending remained stable.
- Operating cash flow fell relative to revenue, reducing the free cash flow margin materially. Capital expenditure was nearly unchanged, so the conversion decline came entirely from lower operating cash flow.
- Compared to the preceding quarter, revenue was slightly lower and operating cash flow was substantially lower, producing a much smaller free cash flow margin. Versus the same quarter one year earlier, revenue was moderately lower and operating cash flow was also lower, although the prior-year figure had been stronger.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$835.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$199.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$285.8M
Cash generated by operations before capital spending.
CapEx
$86.5M
Capital spending and related asset purchases.
FCF margin
5.3%
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 |
|---|---|---|---|---|---|
| 2023-12-30 | $3.7B | $769.3M | $122.3M | $647.0M | 17.3% |
| 2024-03-30 | $3.9B | -$431.0M | $65.7M | -$496.7M | -12.8% |
| 2024-06-29 | $4.0B | $573.0M | $87.2M | $485.8M | 12.1% |
| 2024-09-28 | $3.8B | $285.8M | $86.5M | $199.3M | 5.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 218.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.8B | 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 weakness
Operating cash flow decreased significantly from both the preceding quarter and the year-ago quarter, more than offsetting stable capital expenditure and leading to a lower free cash flow margin. The filing mentions risk factors and management discussion only by reference; no specific cause is provided.
Free cash flow was materially reduced, and the conversion ratio weakened sharply, all attributable to lower operating cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow fell relative to revenue, reducing the free cash flow margin materially. Capital expenditure was nearly unchanged, so the conversion decline came entirely from lower operating cash flow.
Compared to the preceding quarter, revenue was slightly lower and operating cash flow was substantially lower, producing a much smaller free cash flow margin. Versus the same quarter one year earlier, revenue was moderately lower and operating cash flow was also lower, although the prior-year figure had been stronger.
Monitor whether operating cash flow can stabilize or improve in the next quarter, as it was the sole driver of the decline in free cash flow.