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 increased compared to the prior quarter and the same quarter last year. Free cash flow turned positive in the current quarter after negative free cash flow in both comparison periods.
- Operating cash flow was higher relative to revenue, resulting in a positive free cash flow margin. Capital expenditure was lower than operating cash flow, contributing to the generation of free cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved from negative to positive. Versus the same quarter last year, revenue was lower but operating cash flow and free cash flow were higher, and the free cash flow margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$436.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$287.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$403.0M
Cash generated by operations before capital spending.
CapEx
$116.0M
Capital spending and related asset purchases.
FCF margin
11.9%
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 | -$1.5B | $58.0M | $97.0M | -$39.0M | 2.7% |
| 2024-06-28 | $2.0B | $366.0M | $116.0M | $250.0M | 12.5% |
| 2024-09-27 | $2.2B | $34.0M | $96.0M | -$62.0M | -2.8% |
| 2024-12-27 | $2.4B | $403.0M | $116.0M | $287.0M | 11.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 48.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.1B | 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 Improvement
Operating cash flow was substantially higher than in both the prior quarter and the same quarter last year, driving the shift from negative to positive free cash flow.
The increase in operating cash flow was the primary factor behind the improvement in free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher relative to revenue, resulting in a positive free cash flow margin. Capital expenditure was lower than operating cash flow, contributing to the generation of free cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved from negative to positive. Versus the same quarter last year, revenue was lower but operating cash flow and free cash flow were higher, and the free cash flow margin strengthened.
Monitor operating cash flow sustainability given its significant increase from the prior quarter and the same quarter last year.