Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved significantly compared to the same quarter one year earlier, driven by higher operating cash flow and lower capital expenditure. Revenue was stable versus the prior quarter, while free cash flow margin weakened slightly.
- Revenue was stable compared to the prior quarter, while operating cash flow increased, leading to higher free cash flow. Capital expenditure remained low, supporting a free cash flow margin that was slightly lower than the prior quarter but much higher than the same quarter one year earlier.
- Compared to the prior quarter, revenue was stable, operating cash flow and free cash flow were higher, and free cash flow margin was slightly lower. Compared to the same quarter one year earlier, all metrics improved: revenue, operating cash flow, free cash flow, and free cash flow margin were higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$954.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$288.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$306.0M
Cash generated by operations before capital spending.
CapEx
$18.0M
Capital spending and related asset purchases.
FCF margin
21.6%
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 |
|---|---|---|---|---|---|
| 2024-03-30 | $1.2B | $125.0M | $14.0M | $111.0M | 9.4% |
| 2024-06-29 | $1.2B | $288.0M | $10.0M | $278.0M | 22.8% |
| 2024-09-28 | $1.3B | $294.0M | $17.0M | $277.0M | 22.1% |
| 2024-12-31 | $1.3B | $306.0M | $18.0M | $288.0M | 21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 176.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | 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 was higher than both the prior quarter and the same quarter one year earlier, while capital expenditure remained low. This combination drove free cash flow to a level well above the year-ago period.
The higher operating cash flow was the strongest observable driver of improved cash conversion this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, while operating cash flow increased, leading to higher free cash flow. Capital expenditure remained low, supporting a free cash flow margin that was slightly lower than the prior quarter but much higher than the same quarter one year earlier.
Compared to the prior quarter, revenue was stable, operating cash flow and free cash flow were higher, and free cash flow margin was slightly lower. Compared to the same quarter one year earlier, all metrics improved: revenue, operating cash flow, free cash flow, and free cash flow margin were higher, while capital expenditure was lower.
Monitor whether operating cash flow can sustain its current level relative to revenue, as the free cash flow margin narrowed slightly from the prior quarter.