Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was higher than the same quarter last year but lower than the prior quarter, with the free cash flow margin showing a similar pattern. Revenue was lower year-over-year but higher sequentially, while operating cash flow declined compared to both periods.
- Revenue was lower than a year ago but higher than the previous quarter. Operating cash flow decreased relative to both the prior quarter and the year-ago period, while capital expenditure also declined, more sharply year-over-year. The resulting free cash flow was higher compared to the prior year but lower than the immediately preceding quarter, with the free cash flow margin improving year-over-year and weakening sequentially.
- Compared to the prior quarter, free cash flow and margin weakened due to lower operating cash flow despite a slight reduction in capital expenditure. Versus the same quarter last year, free cash flow and margin improved, supported by a more substantial decrease in capital expenditure that offset lower operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$216.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$319.0M
Cash generated by operations before capital spending.
CapEx
$103.0M
Capital spending and related asset purchases.
FCF margin
3.3%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $6.4B | $284.0M | $130.0M | $154.0M | 2.4% |
| 2024-03-31 | $6.2B | $679.0M | $81.0M | $598.0M | 9.7% |
| 2024-06-28 | $6.3B | $340.0M | $111.0M | $229.0M | 3.6% |
| 2024-09-27 | $6.5B | $319.0M | $103.0M | $216.0M | 3.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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.
Reduced Capital Expenditure
Capital expenditure declined compared to both the prior quarter and the same quarter last year, with the year-over-year drop more pronounced. This reduction helped sustain free cash flow even as operating cash flow decreased.
The lower capital expenditure was the key factor behind the year-over-year improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than a year ago but higher than the previous quarter. Operating cash flow decreased relative to both the prior quarter and the year-ago period, while capital expenditure also declined, more sharply year-over-year. The resulting free cash flow was higher compared to the prior year but lower than the immediately preceding quarter, with the free cash flow margin improving year-over-year and weakening sequentially.
Compared to the prior quarter, free cash flow and margin weakened due to lower operating cash flow despite a slight reduction in capital expenditure. Versus the same quarter last year, free cash flow and margin improved, supported by a more substantial decrease in capital expenditure that offset lower operating cash flow.
Monitor the impact of ongoing logistical constraints and increased freight costs on operating cash flow, as noted in the filing context.