Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved from both the prior quarter and the same quarter last year. Operating cash flow increased while revenue was mixed, with higher capital expenditure partially offsetting the gain.
- Operating cash flow as a portion of revenue increased, indicating stronger cash generation from revenue. Higher capital expenditure reduced the conversion to free cash flow, but the overall free cash flow margin still expanded.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, while capital expenditure also rose. Versus the year-ago quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$393.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$476.1M
Cash generated by operations before capital spending.
CapEx
$82.8M
Capital spending and related asset purchases.
FCF margin
38.4%
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 |
|---|---|---|---|---|---|
| 2023-12-29 | $1.2B | $774.9M | $22.2M | $752.7M | 62.6% |
| 2024-03-29 | $1.0B | $300.3M | $27.6M | $272.7M | 26.1% |
| 2024-06-28 | $905.5M | $273.4M | $24.4M | $249.0M | 27.5% |
| 2024-09-27 | $1.0B | $476.1M | $82.8M | $393.3M | 38.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 650.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $374.3M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Operating Cash Flow
Operating cash flow rose compared to both the prior quarter and the year-ago quarter, outpacing the change in revenue. This drove the improvement in free cash flow and margin despite higher capital expenditure.
The higher operating cash flow provided a stronger base for free cash generation and margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a portion of revenue increased, indicating stronger cash generation from revenue. Higher capital expenditure reduced the conversion to free cash flow, but the overall free cash flow margin still expanded.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, while capital expenditure also rose. Versus the year-ago quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to an improved free cash flow margin.
Monitor the level of capital expenditure, which increased substantially from both the prior quarter and the year-ago period.