Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from the prior quarter but remained well below the year-ago level. The year-over-year decline was driven by lower operating cash flow despite a slight reduction in capital expenditure.
- Revenue was slightly lower than the prior quarter and higher than a year ago, yet operating cash flow weakened significantly year-over-year, resulting in a much lower free cash flow margin. The gap between operating cash flow and net income widened relative to the year-ago period.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow improved substantially, moving from a negative free cash flow margin to a low positive one. Versus the same quarter one year earlier, all cash flow metrics were lower and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$234.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$445.0M
Cash generated by operations before capital spending.
CapEx
$211.0M
Capital spending and related asset purchases.
FCF margin
1.2%
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 | $19.4B | $517.0M | $183.0M | $334.0M | 1.7% |
| 2024-06-29 | $20.6B | $1.6B | $302.0M | $1.3B | 6.4% |
| 2024-09-28 | $20.5B | $53.0M | $122.0M | -$69.0M | -0.3% |
| 2024-12-28 | $20.2B | $445.0M | $211.0M | $234.0M | 1.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 57.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Volatility
The primary driver of the sharp year-over-year decline in free cash flow was a decrease in cash provided by operating activities, partially offset by lower capital expenditures and higher proceeds from asset sales, as noted in the filing.
Sustained weakness in operating cash flow could pressure free cash flow generation and liquidity.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter and higher than a year ago, yet operating cash flow weakened significantly year-over-year, resulting in a much lower free cash flow margin. The gap between operating cash flow and net income widened relative to the year-ago period.
Compared with the immediately preceding quarter, operating cash flow and free cash flow improved substantially, moving from a negative free cash flow margin to a low positive one. Versus the same quarter one year earlier, all cash flow metrics were lower and the margin weakened.
Monitor whether the sequential improvement in operating cash flow can be sustained in the next quarter.