Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved strongly, driving higher free cash flow and a wider margin relative to both the preceding quarter and the same quarter one year earlier. Capital expenditure increased slightly from the prior quarter but remained lower than the year-ago level.
- Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow, free cash flow, and free cash flow margin all improved sequentially and year-over-year, reflecting a stronger cash conversion profile for the period.
- Compared with the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were higher; capital expenditure was also slightly higher. Versus the same quarter one year earlier, every metric improved: revenue, operating cash flow, free cash flow, and margin were higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$303.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$332.4M
Cash generated by operations before capital spending.
CapEx
$29.0M
Capital spending and related asset purchases.
FCF margin
20.2%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $1.4B | $291.0M | $15.9M | $275.1M | 20.4% |
| 2024-06-30 | $1.4B | $318.7M | $17.7M | $301.0M | 21.9% |
| 2024-09-29 | $1.4B | $249.8M | $21.1M | $228.7M | 15.8% |
| 2024-12-29 | $1.5B | $332.4M | $29.0M | $303.4M | 20.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 152.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | 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 Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, with the sequential improvement being the most notable increase among all metrics. This served as the primary support for the elevated free cash flow and margin expansion.
Higher operating cash flow directly contributed to a stronger free cash flow result and an improved cash conversion margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow, free cash flow, and free cash flow margin all improved sequentially and year-over-year, reflecting a stronger cash conversion profile for the period.
Compared with the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were higher; capital expenditure was also slightly higher. Versus the same quarter one year earlier, every metric improved: revenue, operating cash flow, free cash flow, and margin were higher, while capital expenditure was lower.
Monitor the trend in capital expenditure, which increased from the prior quarter after being lower year-over-year.