Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow and free cash flow both improved compared with both the prior quarter and the year-ago quarter, with free cash flow margin strengthening in the current quarter.
- Operating cash flow as a proportion of revenue increased relative to both the prior quarter and the year-ago quarter, while capital expenditure remained stable. The resulting free cash flow margin improved sequentially and was higher than the same quarter one year earlier.
- Compared with the immediate prior quarter, revenue was lower but free cash flow rose strongly and the free cash flow margin widened. Versus the same quarter one year earlier, revenue was higher and both operating cash flow and free cash flow were higher, with a slightly larger free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$710.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$752.0M
Cash generated by operations before capital spending.
CapEx
$42.0M
Capital spending and related asset purchases.
FCF margin
35.4%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-28 | $2.0B | $752.0M | $42.0M | $710.0M | 35.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Free Cash Flow Generation
Operating cash flow increased sharply relative to both the prior quarter and the year-ago quarter, while capital expenditure remained roughly flat. This drove a significant sequential improvement in free cash flow and a higher free cash flow margin.
The quarter's free cash flow exceeded the level from one year earlier and was more than the prior quarter's free cash flow despite lower revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue increased relative to both the prior quarter and the year-ago quarter, while capital expenditure remained stable. The resulting free cash flow margin improved sequentially and was higher than the same quarter one year earlier.
Compared with the immediate prior quarter, revenue was lower but free cash flow rose strongly and the free cash flow margin widened. Versus the same quarter one year earlier, revenue was higher and both operating cash flow and free cash flow were higher, with a slightly larger free cash flow margin.
Monitor the change in cash and cash equivalents, which declined materially from the prior quarter end.