Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the year-ago quarter, driven by a higher operating cash flow while capital expenditure was slightly lower. The free cash flow margin strengthened as a result, even though revenue was essentially stable across all periods.
- Revenue was stable, but operating cash flow rose substantially, leading to a higher free cash flow and an improved free cash flow margin. Capital expenditure was slightly lower than both comparison periods, further supporting cash conversion.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow and slightly lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin also improved, with operating cash flow higher and capital expenditure slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$857.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$149.0M
Capital spending and related asset purchases.
FCF margin
21.5%
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 |
|---|---|---|---|---|---|
| 2023-09-29 | $4.0B | $1.1B | $194.0M | $944.0M | 23.4% |
| 2023-12-29 | $3.8B | $719.0M | $151.0M | $568.0M | 14.8% |
| 2024-03-29 | $4.0B | $710.0M | $167.0M | $543.0M | 13.7% |
| 2024-06-28 | $4.0B | $1.0B | $149.0M | $857.0M | 21.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 149.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.7B | 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 materially higher than both the prior quarter and the year-ago quarter, while revenue remained essentially unchanged. This was the primary factor behind the improvement in free cash flow and margin.
Higher operating cash flow directly lifted free cash flow and margin without requiring revenue growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, but operating cash flow rose substantially, leading to a higher free cash flow and an improved free cash flow margin. Capital expenditure was slightly lower than both comparison periods, further supporting cash conversion.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow and slightly lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin also improved, with operating cash flow higher and capital expenditure slightly lower.
Monitor whether operating cash flow can sustain its elevated level relative to stable revenue in future quarters.