Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially and versus the prior year. Free cash flow weakened sharply from the preceding quarter and was lower compared to the same quarter a year ago, driven by a much larger gap between operating cash flow and capital expenditure.
- Operating cash flow declined while capital expenditure rose, causing free cash flow to fall materially. The free cash flow margin contracted relative to both the prior quarter and the year-ago quarter, reflecting weaker cash conversion from revenue.
- Compared with the immediately preceding quarter, operating cash flow was lower and capital expenditure was higher, producing a significantly lower free cash flow. Versus the same quarter one year earlier, operating cash flow was lower while capital expenditure was roughly stable, resulting in a lower free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$501.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$83.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$159.4M
Cash generated by operations before capital spending.
CapEx
$75.6M
Capital spending and related asset purchases.
FCF margin
8.4%
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 | $1.0B | $129.9M | $79.1M | $50.7M | 5.0% |
| 2024-06-29 | $1.0B | $193.5M | $39.5M | $154.0M | 15.0% |
| 2024-09-28 | $1.0B | $251.8M | $38.7M | $213.1M | 21.1% |
| 2024-12-28 | $1.0B | $159.4M | $75.6M | $83.7M | 8.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -39.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.5% | 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.
Weaker operating cash generation
The drop in free cash flow was driven primarily by lower operating cash flow, as revenue remained stable. The free cash flow margin declined alongside this weakening cash conversion.
Free cash flow fell to its lowest level among the three reported quarters, signaling a notable compression in cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow declined while capital expenditure rose, causing free cash flow to fall materially. The free cash flow margin contracted relative to both the prior quarter and the year-ago quarter, reflecting weaker cash conversion from revenue.
Compared with the immediately preceding quarter, operating cash flow was lower and capital expenditure was higher, producing a significantly lower free cash flow. Versus the same quarter one year earlier, operating cash flow was lower while capital expenditure was roughly stable, resulting in a lower free cash flow.
Monitor the trajectory of capital expenditure, which increased notably from the prior quarter and may pressure future free cash flow if operating cash flow does not rebound.