Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply from the prior quarter, lifting free cash flow and margin. Compared to the same quarter last year, free cash flow was lower despite similar revenue.
- Revenue was stable relative to the prior quarter, while operating cash flow increased substantially, resulting in a higher free cash flow margin. Capital expenditure rose moderately but was more than offset by the operating cash flow improvement.
- Compared to the immediately preceding quarter, free cash flow and margin improved significantly, driven by stronger operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow declined while revenue was similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$753.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$564.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$679.1M
Cash generated by operations before capital spending.
CapEx
$114.5M
Capital spending and related asset purchases.
FCF margin
15.2%
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 |
|---|---|---|---|---|---|
| 2024-03-30 | $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% |
| 2024-12-28 | $3.7B | $679.1M | $114.5M | $564.6M | 15.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 289.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | 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 Recovery
Operating cash flow rose substantially from the prior quarter, which was the primary factor behind the improvement in free cash flow and margin. This occurred even as revenue was essentially unchanged.
The stronger operating cash flow directly lifted free cash flow and margin to a higher level than the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to the prior quarter, while operating cash flow increased substantially, resulting in a higher free cash flow margin. Capital expenditure rose moderately but was more than offset by the operating cash flow improvement.
Compared to the immediately preceding quarter, free cash flow and margin improved significantly, driven by stronger operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow declined while revenue was similar.
Monitor whether operating cash flow can sustain its sequential improvement in future periods.