Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the preceding quarter but lower than the same quarter one year earlier. Free cash flow and its margin weakened in both comparisons, driven by a decline in operating cash flow.
- Operating cash flow decreased relative to the prior quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter. The resulting free cash flow margin weakened in both comparisons.
- Compared to the immediately preceding quarter, revenue improved but operating cash flow declined, leading to lower free cash flow and a weakened margin. Versus the same quarter one year earlier, all metrics were lower except capital expenditure, which was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$338.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$377.2M
Cash generated by operations before capital spending.
CapEx
$39.0M
Capital spending and related asset purchases.
FCF margin
31.7%
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 | $1.0B | $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% |
| 2024-12-27 | $1.1B | $377.2M | $39.0M | $338.2M | 31.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 208.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $607.8M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Weaker Operating Cash Generation
The filing indicates that the decrease in operating cash flow was primarily due to working capital changes and lower net income.
This decline in operating cash flow was the primary driver of the lower free cash flow, even as capital expenditure decreased from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased relative to the prior quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter. The resulting free cash flow margin weakened in both comparisons.
Compared to the immediately preceding quarter, revenue improved but operating cash flow declined, leading to lower free cash flow and a weakened margin. Versus the same quarter one year earlier, all metrics were lower except capital expenditure, which was higher.
Monitor changes in working capital, particularly accounts receivable and inventory, as cited in the filing.