Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position in the prior quarter and increased from the year-ago period.
- Operating cash flow as a share of revenue was higher than both the prior quarter and the year-ago quarter. After deducting capital expenditure, free cash flow margin improved to a positive level from a negative margin in the prior quarter and was higher than the year-ago margin.
- Compared to the prior quarter, revenue was higher and operating cash flow was substantially higher, leading to a positive free cash flow versus a negative free cash flow. Compared to the same quarter last year, revenue was slightly higher, operating cash flow was higher, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$636.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$271.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$517.2M
Cash generated by operations before capital spending.
CapEx
$246.0M
Capital spending and related asset purchases.
FCF margin
7.2%
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 |
|---|---|---|---|---|---|
| 2024-03-30 | $3.4B | $257.4M | $157.2M | $100.2M | 3.0% |
| 2024-06-29 | $4.2B | $559.9M | $192.6M | $367.3M | 8.6% |
| 2024-09-28 | $3.5B | $86.3M | $188.2M | -$101.9M | -2.9% |
| 2024-12-28 | $3.8B | $517.2M | $246.0M | $271.2M | 7.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $101.5M | 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 Improvement
Operating cash flow increased significantly from the prior quarter and was higher than the year-ago quarter. This was the strongest observable driver of the free cash flow improvement.
The higher operating cash flow directly enabled the positive free cash flow and the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than both the prior quarter and the year-ago quarter. After deducting capital expenditure, free cash flow margin improved to a positive level from a negative margin in the prior quarter and was higher than the year-ago margin.
Compared to the prior quarter, revenue was higher and operating cash flow was substantially higher, leading to a positive free cash flow versus a negative free cash flow. Compared to the same quarter last year, revenue was slightly higher, operating cash flow was higher, and free cash flow was higher.
Monitor whether operating cash flow can sustain its current level relative to revenue in future quarters.