Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter a year earlier, but operating cash flow rose only modestly from the prior quarter and was lower than a year earlier, resulting in a free cash flow margin that declined compared to both periods. The cash conversion weakened as revenue growth outpaced cash generation.
- Revenue was higher than the prior quarter, and operating cash flow was slightly higher, but capital expenditure was also slightly higher, yielding free cash flow that was marginally above the prior quarter. Compared to the same quarter a year earlier, revenue was higher while operating cash flow was lower, capital expenditure was lower, and free cash flow was lower, causing the free cash flow margin to contract.
- Compared to the prior quarter, revenue and free cash flow were higher, but the free cash flow margin was lower. Compared to the same quarter a year earlier, revenue was higher, while operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$219.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$258.0M
Cash generated by operations before capital spending.
CapEx
$38.5M
Capital spending and related asset purchases.
FCF margin
13.8%
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 |
|---|---|---|---|---|---|
| 2023-12-30 | $1.5B | $465.9M | $48.6M | $417.3M | 28.1% |
| 2024-03-30 | $1.4B | $435.3M | $33.2M | $402.1M | 29.1% |
| 2024-06-29 | $1.5B | $255.3M | $37.2M | $218.2M | 14.5% |
| 2024-09-28 | $1.6B | $258.0M | $38.5M | $219.4M | 13.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 55.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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.
Revenue growth outpacing cash generation
Revenue increased compared to both the prior quarter and the same quarter a year earlier. However, operating cash flow did not increase at a similar pace, leading to a lower free cash flow margin.
The company’s ability to convert revenue into free cash flow weakened this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, and operating cash flow was slightly higher, but capital expenditure was also slightly higher, yielding free cash flow that was marginally above the prior quarter. Compared to the same quarter a year earlier, revenue was higher while operating cash flow was lower, capital expenditure was lower, and free cash flow was lower, causing the free cash flow margin to contract.
Compared to the prior quarter, revenue and free cash flow were higher, but the free cash flow margin was lower. Compared to the same quarter a year earlier, revenue was higher, while operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the relationship between revenue growth and operating cash flow, as the gap widened this quarter.