Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year, yet operating cash flow turned negative, driving free cash flow deeply negative. The free cash flow margin weakened sharply versus both comparison periods.
- Despite higher revenue, operating cash flow was negative, resulting in negative free cash flow and a negative free cash flow margin. Capital expenditure was higher than a year ago but lower than the prior quarter.
- Compared to the prior quarter, revenue was slightly lower while operating cash flow, free cash flow, and free cash flow margin all weakened significantly. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and margin all deteriorated.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$219.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$104.0M
Cash generated by operations before capital spending.
CapEx
$115.0M
Capital spending and related asset purchases.
FCF margin
-4.2%
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 | $4.7B | $414.0M | $93.0M | $321.0M | 6.8% |
| 2023-09-29 | $4.9B | $543.0M | $148.0M | $395.0M | 8.0% |
| 2023-12-29 | $5.3B | $789.0M | $137.0M | $652.0M | 12.2% |
| 2024-03-29 | $5.2B | -$104.0M | $115.0M | -$219.0M | -4.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -77.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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 Swing
Operating cash flow shifted from positive in both the prior quarter and the year-ago quarter to negative in the current quarter. This is the strongest observable driver of the negative free cash flow.
The negative operating cash flow directly caused free cash flow to be negative despite higher revenue than a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was negative, resulting in negative free cash flow and a negative free cash flow margin. Capital expenditure was higher than a year ago but lower than the prior quarter.
Compared to the prior quarter, revenue was slightly lower while operating cash flow, free cash flow, and free cash flow margin all weakened significantly. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and margin all deteriorated.
Monitor whether operating cash flow returns to positive levels in the coming quarter, as the current negative figure is a sharp reversal from both comparison periods.