Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially and lower year-over-year. Operating cash flow and free cash flow improved from both the prior quarter and the same quarter last year.
- Operating cash flow exceeded capital expenditure, generating positive free cash flow and a free cash flow margin that improved compared to both the prior quarter and the year-ago quarter. Revenue was essentially unchanged quarter over quarter and modestly lower year over year.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Relative to the same quarter one year earlier, operating cash flow and free cash flow were higher, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$486.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$154.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$193.5M
Cash generated by operations before capital spending.
CapEx
$39.5M
Capital spending and related asset purchases.
FCF margin
15.0%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $1.0B | $205.4M | $65.9M | $139.5M | 13.6% |
| 2023-12-30 | $1.0B | $220.9M | $78.3M | $142.6M | 14.1% |
| 2024-03-30 | $1.0B | $129.9M | $79.1M | $50.7M | 5.0% |
| 2024-06-29 | $1.0B | $193.5M | $39.5M | $154.0M | 15.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 163.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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.
Improved cash generation
Operating cash flow increased from the preceding quarter and the year-ago quarter, while capital expenditure declined, resulting in stronger free cash flow and a higher free cash flow margin.
This combination drove a substantial sequential and year-over-year increase in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, generating positive free cash flow and a free cash flow margin that improved compared to both the prior quarter and the year-ago quarter. Revenue was essentially unchanged quarter over quarter and modestly lower year over year.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Relative to the same quarter one year earlier, operating cash flow and free cash flow were higher, and capital expenditure was lower.
Monitor capital expenditure levels, as they decreased from both the prior quarter and the year-ago period.