Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's free cash flow improved compared to the same quarter last year, driven by higher operating cash flow, while revenue was lower. Relative to the preceding quarter, free cash flow decreased despite a shift to positive revenue.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow and a healthy margin, reflecting efficient cash conversion from operations.
- Compared to the preceding quarter, free cash flow was lower despite a shift from negative to positive revenue, while operating cash flow also decreased. Versus the same quarter last year, free cash flow and operating cash flow were higher, with revenue lower but margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$230.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$256.7M
Cash generated by operations before capital spending.
CapEx
$26.4M
Capital spending and related asset purchases.
FCF margin
23.4%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $1.5B | $321.0M | $21.0M | $300.0M | 19.7% |
| 2023-09-29 | $1.5B | $411.4M | $27.9M | $383.5M | 25.7% |
| 2023-12-31 | -$567.7M | $446.8M | $4.9M | $441.9M | -77.8% |
| 2024-03-29 | $984.2M | $256.7M | $26.4M | $230.3M | 23.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.2B | 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 increased year-over-year and remained a substantial portion of free cash flow, with capital expenditure relatively modest. This was the strongest observable driver of free cash flow.
Higher operating cash flow directly supported free cash flow and margin expansion compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow and a healthy margin, reflecting efficient cash conversion from operations.
Compared to the preceding quarter, free cash flow was lower despite a shift from negative to positive revenue, while operating cash flow also decreased. Versus the same quarter last year, free cash flow and operating cash flow were higher, with revenue lower but margin improved.
Monitor the trajectory of operating cash flow relative to revenue, as the current quarter's conversion rate was notably higher than prior periods.