Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow improved compared to the previous quarter but were lower than the year-ago period, resulting in a free cash flow margin that strengthened sequentially but weakened year over year.
- Operating cash flow as a percentage of revenue improved from the previous quarter, supported by higher cash generation despite slightly lower revenue, while capital expenditure was lower than both the prior quarter and the year-ago quarter. The resulting free cash flow margin rose sequentially but fell compared to the same quarter last year.
- Compared to the immediately preceding quarter, free cash flow and margin improved significantly, driven by higher operating cash flow with lower capital expenditure. However, relative to the same quarter one year earlier, both operating cash flow and free cash flow were lower, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$625.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$191.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$205.3M
Cash generated by operations before capital spending.
CapEx
$13.7M
Capital spending and related asset purchases.
FCF margin
24.0%
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 | $788.9M | $201.0M | $21.6M | $179.4M | 22.7% |
| 2024-03-31 | $800.5M | $156.6M | $20.0M | $136.6M | 17.1% |
| 2024-06-30 | $807.2M | $133.6M | $15.9M | $117.7M | 14.6% |
| 2024-09-30 | $798.2M | $205.3M | $13.7M | $191.6M | 24.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 160.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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 Improvement
Operating cash flow increased substantially from the prior quarter, more than offsetting a slight decline in revenue and lower capital expenditure. This drove a significant improvement in free cash flow and margin.
The stronger cash generation enhances the company's near-term liquidity position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved from the previous quarter, supported by higher cash generation despite slightly lower revenue, while capital expenditure was lower than both the prior quarter and the year-ago quarter. The resulting free cash flow margin rose sequentially but fell compared to the same quarter last year.
Compared to the immediately preceding quarter, free cash flow and margin improved significantly, driven by higher operating cash flow with lower capital expenditure. However, relative to the same quarter one year earlier, both operating cash flow and free cash flow were lower, and the margin weakened.
Monitor the company's forward-looking statements regarding inventory recalibration and order stabilization, as referenced in the filing's management discussion and risk factors.