Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Veralto's free cash flow improved substantially compared to the prior quarter and the same quarter last year, driven by a sharp increase in operating cash flow. The free cash flow margin also improved, reflecting stronger cash conversion from revenue.
- Revenue was higher than both prior periods, while operating cash flow increased at a faster pace, leading to an improved free cash flow margin. Capital expenditure remained relatively stable, allowing most operating cash flow to convert into free cash flow.
- Compared to the immediately preceding quarter, revenue and operating cash flow were both higher, with free cash flow rising significantly. Versus the same quarter one year earlier, revenue was higher and operating cash flow improved, resulting in a higher free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$943.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$323.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$339.0M
Cash generated by operations before capital spending.
CapEx
$16.0M
Capital spending and related asset purchases.
FCF margin
23.6%
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 |
|---|---|---|---|---|---|
| 2024-09-27 | $1.3B | $224.0M | $9.0M | $215.0M | 16.4% |
| 2024-12-31 | $1.3B | $285.0M | $22.0M | $263.0M | 19.6% |
| 2025-04-04 | $1.3B | $157.0M | $15.0M | $142.0M | 10.7% |
| 2025-07-04 | $1.4B | $339.0M | $16.0M | $323.0M | 23.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 145.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.1B | 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 improved significantly compared to both the prior quarter and the year-ago quarter, providing the primary uplift to free cash flow.
This strong operating cash generation allowed free cash flow to outpace revenue growth, resulting in an expanded free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both prior periods, while operating cash flow increased at a faster pace, leading to an improved free cash flow margin. Capital expenditure remained relatively stable, allowing most operating cash flow to convert into free cash flow.
Compared to the immediately preceding quarter, revenue and operating cash flow were both higher, with free cash flow rising significantly. Versus the same quarter one year earlier, revenue was higher and operating cash flow improved, resulting in a higher free cash flow margin.
Monitor the trend in capital expenditure, as it was slightly higher than both prior periods, which could influence future free cash flow conversion.