Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow surged, driving free cash flow sharply positive and improving the margin. Revenue was higher than the prior quarter but lower than the same quarter last year.
- Revenue increased from the prior quarter, while operating cash flow more than offset a moderate capital expenditure, resulting in a free cash flow margin that turned positive and was higher than both the previous quarter and the same quarter a year ago.
- Compared with the prior quarter, revenue was higher and operating cash flow improved significantly, turning free cash flow from negative to positive. Versus the same quarter a year ago, revenue was lower but operating cash flow and free cash flow were both higher, and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$282.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$167.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$215.7M
Cash generated by operations before capital spending.
CapEx
$48.3M
Capital spending and related asset purchases.
FCF margin
11.1%
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 |
|---|---|---|---|---|---|
| 2022-12-25 | $1.7B | $110.7M | $2.5M | $108.2M | 6.4% |
| 2023-04-02 | $1.0B | $88.8M | $53.2M | $35.6M | 3.6% |
| 2023-07-02 | $1.2B | $30.4M | $58.9M | -$28.5M | -2.4% |
| 2023-10-01 | $1.5B | $215.7M | $48.3M | $167.4M | 11.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -97.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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.
Operating Cash Flow Surge
Operating cash flow increased substantially from the prior quarter and from the same quarter a year ago, even as revenue declined year over year. This was the strongest observable factor in the cash conversion improvement.
The higher operating cash flow drove free cash flow from negative to positive and lifted the margin above both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, while operating cash flow more than offset a moderate capital expenditure, resulting in a free cash flow margin that turned positive and was higher than both the previous quarter and the same quarter a year ago.
Compared with the prior quarter, revenue was higher and operating cash flow improved significantly, turning free cash flow from negative to positive. Versus the same quarter a year ago, revenue was lower but operating cash flow and free cash flow were both higher, and the margin strengthened.
Monitor the ongoing labor strikes in the entertainment industry, as noted in the filing, which could affect the entertainment segment.