Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was negative for the quarter, yet operating cash flow and free cash flow were both higher than the prior quarter and the same quarter last year, resulting in an unusually negative free cash flow margin. The cash generation pattern diverged sharply from revenue trends.
- Despite negative revenue, operating cash flow and free cash flow were positive and substantial, with capital expenditure remaining stable. The cash conversion metrics, when measured against a negative revenue base, produced a deeply negative margin, indicating that the usual profitability-based conversion ratio is not applicable.
- Compared with the immediately preceding quarter, revenue was sharply lower while operating cash flow and free cash flow both improved. Versus the same quarter one year earlier, revenue declined but free cash flow increased. The margin change was dominated by the unusual negative revenue figure.
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
$437.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$459.0M
Cash generated by operations before capital spending.
CapEx
$21.6M
Capital spending and related asset purchases.
FCF margin
-635.8%
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 | -$567.7M | $446.8M | $4.9M | $441.9M | -77.8% |
| 2024-03-29 | $984.2M | $256.7M | $26.4M | $230.3M | 23.4% |
| 2024-06-28 | $2.1B | $308.9M | $29.2M | $279.7M | 13.4% |
| 2024-09-27 | -$68.8M | $459.0M | $21.6M | $437.4M | -635.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 197.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | -31.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | 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 year-ago quarter, providing the primary support for free cash flow despite negative revenue. This divergence warrants attention as revenue remains a key input to cash generation.
If revenue normalizes, the already strong operating cash flow could translate into an even higher free cash flow level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite negative revenue, operating cash flow and free cash flow were positive and substantial, with capital expenditure remaining stable. The cash conversion metrics, when measured against a negative revenue base, produced a deeply negative margin, indicating that the usual profitability-based conversion ratio is not applicable.
Compared with the immediately preceding quarter, revenue was sharply lower while operating cash flow and free cash flow both improved. Versus the same quarter one year earlier, revenue declined but free cash flow increased. The margin change was dominated by the unusual negative revenue figure.
Monitor the underlying cause of the negative revenue, which could impact the sustainability of future cash flows.