Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter one year earlier, driven by higher operating cash flow despite a larger capital expenditure. However, free cash flow and margin weakened relative to the immediately preceding quarter.
- Revenue was stable versus the prior year, while operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure rose compared to both the prior quarter and the year-ago quarter, partially offsetting the cash conversion improvement.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, and free cash flow and margin declined. Versus the same quarter one year earlier, revenue was essentially unchanged, while operating cash flow, free cash flow, and margin were all higher.
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
$673.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$878.0M
Cash generated by operations before capital spending.
CapEx
$205.0M
Capital spending and related asset purchases.
FCF margin
17.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-09-27 | $4.1B | $1.0B | $213.0M | $829.0M | 20.4% |
| 2024-12-27 | $3.8B | $878.0M | $205.0M | $673.0M | 17.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 127.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | 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 the year-ago quarter, providing the primary support for the improvement in free cash flow. This occurred even as revenue remained stable, indicating a stronger cash conversion from operations.
The increase in operating cash flow drove the year-over-year improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior year, while operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure rose compared to both the prior quarter and the year-ago quarter, partially offsetting the cash conversion improvement.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, and free cash flow and margin declined. Versus the same quarter one year earlier, revenue was essentially unchanged, while operating cash flow, free cash flow, and margin were all higher.
Monitor the trend in capital expenditure, which increased sequentially and year-over-year, as it directly impacts free cash flow conversion.