Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to a negative figure one year earlier, driven by a shift from negative to positive operating cash flow. The current quarter's free cash flow margin improved versus both the prior quarter and the same quarter last year.
- Revenue was stable versus the prior quarter, while operating cash flow was lower, resulting in a lower free cash flow margin. Compared to the same quarter one year earlier, revenue was higher and operating cash flow turned positive, leading to a positive free cash flow margin.
- Free cash flow and free cash flow margin were lower than the immediately preceding quarter but higher than the same quarter one year earlier. Operating cash flow followed the same pattern, while capital expenditure was lower than both comparison periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$96.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$113.0M
Cash generated by operations before capital spending.
CapEx
$17.0M
Capital spending and related asset purchases.
FCF margin
2.4%
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 | $3.8B | $164.0M | $40.0M | $124.0M | 3.3% |
| 2023-09-29 | $3.9B | $795.0M | $50.0M | $745.0M | 19.1% |
| 2023-12-29 | $4.0B | $326.0M | $78.0M | $248.0M | 6.3% |
| 2024-03-29 | $4.0B | $113.0M | $17.0M | $96.0M | 2.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 33.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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.
Operating Cash Flow Turnaround
Operating cash flow improved from a negative figure one year earlier to a positive amount in the current quarter, which was the primary factor behind the positive free cash flow. This improvement occurred even though revenue was higher year over year.
The shift in operating cash flow directly enabled the company to report positive free cash flow and a positive margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter, while operating cash flow was lower, resulting in a lower free cash flow margin. Compared to the same quarter one year earlier, revenue was higher and operating cash flow turned positive, leading to a positive free cash flow margin.
Free cash flow and free cash flow margin were lower than the immediately preceding quarter but higher than the same quarter one year earlier. Operating cash flow followed the same pattern, while capital expenditure was lower than both comparison periods.
Monitor whether operating cash flow can sustain its positive level given the sequential decline from the prior quarter.