Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to the prior quarter and the same quarter last year. The free cash flow margin strengthened sequentially but remained below the prior quarter level.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin, calculated as free cash flow divided by revenue, showed a mixed trend relative to the two comparison periods.
- Compared to the immediately preceding quarter, revenue increased while operating cash flow and free cash flow were lower, causing the free cash flow margin to weaken. Versus the same quarter one year earlier, all metrics were higher and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$531.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$572.0M
Cash generated by operations before capital spending.
CapEx
$41.0M
Capital spending and related asset purchases.
FCF margin
24.3%
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 | $1.8B | $636.0M | $36.0M | $600.0M | 33.5% |
| 2024-03-30 | $1.9B | $229.0M | $48.0M | $181.0M | 9.4% |
| 2024-06-29 | $2.0B | $608.0M | $40.0M | $568.0M | 27.8% |
| 2024-09-30 | $2.2B | $572.0M | $41.0M | $531.0M | 24.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 113.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth supporting cash generation
Revenue was higher than both the prior quarter and the year-ago quarter, providing a larger base for cash conversion. Free cash flow and free cash flow margin both improved year over year.
Higher revenue contributed to stronger absolute free cash flow compared to the prior year, though sequential cash conversion efficiency decreased.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin, calculated as free cash flow divided by revenue, showed a mixed trend relative to the two comparison periods.
Compared to the immediately preceding quarter, revenue increased while operating cash flow and free cash flow were lower, causing the free cash flow margin to weaken. Versus the same quarter one year earlier, all metrics were higher and the free cash flow margin improved.
Monitor the relationship between operating cash flow and revenue, as operating cash flow declined sequentially despite higher revenue.