Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter but weakened compared to the same quarter last year. The sequential increase was driven by higher operating cash flow, while the year-over-year decline reflected lower revenue and a narrower margin.
- Revenue was higher than the prior quarter, and operating cash flow rose, leading to an increase in free cash flow and a higher free cash flow margin. Compared to the same quarter last year, revenue was lower, operating cash flow decreased, and free cash flow margin weakened.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all improved. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower, while capital expenditure was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$650.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$293.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$446.0M
Cash generated by operations before capital spending.
CapEx
$153.0M
Capital spending and related asset purchases.
FCF margin
8.1%
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 |
|---|---|---|---|---|---|
| 2024-03-30 | $3.1B | -$7.0M | $66.0M | -$73.0M | -2.3% |
| 2024-06-29 | $3.5B | $367.0M | $74.0M | $293.0M | 8.3% |
| 2024-09-28 | $3.4B | $208.0M | $71.0M | $137.0M | 4.0% |
| 2024-12-28 | $3.6B | $446.0M | $153.0M | $293.0M | 8.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 207.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Improvement
Operating cash flow was higher than the prior quarter, which was the strongest observable driver of the sequential increase in free cash flow. This improvement occurred alongside higher revenue.
The higher operating cash flow directly supported a stronger free cash flow margin compared to the prior quarter.
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 operating cash flow rose, leading to an increase in free cash flow and a higher free cash flow margin. Compared to the same quarter last year, revenue was lower, operating cash flow decreased, and free cash flow margin weakened.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all improved. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower, while capital expenditure was also lower.
Monitor the relationship between operating cash flow and capital expenditure, as the current quarter's higher capital spending relative to the prior quarter may affect future free cash flow conversion.