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 both the preceding quarter and the same quarter one year ago, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin also strengthened over both periods.
- Revenue increased from the prior quarter and from the year-ago quarter, while operating cash flow rose as well, leading to higher free cash flow. The free cash flow margin improved sequentially and year-over-year, reflecting a stronger conversion of revenue into free cash flow relative to the prior comparative periods.
- Compared to the immediately preceding quarter, all reported metrics—revenue, operating cash flow, free cash flow, and free cash flow margin—were higher. Capital expenditure was slightly lower. Relative to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were also higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$497.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$109.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$115.1M
Cash generated by operations before capital spending.
CapEx
$6.1M
Capital spending and related asset purchases.
FCF margin
11.1%
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 | $953.3M | $233.8M | $6.8M | $227.0M | 23.8% |
| 2024-06-28 | $870.8M | $87.6M | $14.3M | $73.3M | 8.4% |
| 2024-09-27 | $875.8M | $94.9M | $6.4M | $88.5M | 10.1% |
| 2025-01-03 | $983.4M | $115.1M | $6.1M | $109.0M | 11.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 120.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$651.8M | 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 Growth
Operating cash flow increased quarter-over-quarter and year-over-year, outpacing the growth in revenue. This contributed directly to the rise in free cash flow and the improvement in free cash flow margin.
The higher operating cash flow was the strongest observable driver of free cash flow improvement in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter and from the year-ago quarter, while operating cash flow rose as well, leading to higher free cash flow. The free cash flow margin improved sequentially and year-over-year, reflecting a stronger conversion of revenue into free cash flow relative to the prior comparative periods.
Compared to the immediately preceding quarter, all reported metrics—revenue, operating cash flow, free cash flow, and free cash flow margin—were higher. Capital expenditure was slightly lower. Relative to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were also higher, while capital expenditure was lower.
The sustainability of the free cash flow margin level should be monitored, as it improved notably in the current quarter.