Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply as operating cash flow turned positive and free cash flow became positive, while revenue increased slightly. The free cash flow margin strengthened compared to both the prior quarter and the same quarter last year.
- Revenue was higher, and operating cash flow moved from negative to positive, driving a substantial increase in free cash flow. Capital expenditure was lower than the prior quarter but slightly higher than a year ago, contributing to the improved free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher and all cash flow metrics improved significantly, with operating cash flow and free cash flow turning positive. Versus the same quarter one year earlier, revenue was higher and operating cash flow, free cash flow, and free cash flow margin all strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$657.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$754.0M
Cash generated by operations before capital spending.
CapEx
$97.0M
Capital spending and related asset purchases.
FCF margin
12.4%
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 |
|---|---|---|---|---|---|
| 2023-09-29 | $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% |
| 2024-06-28 | $5.3B | $754.0M | $97.0M | $657.0M | 12.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 179.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 Recovery
Operating cash flow improved from negative to positive, which was the primary factor behind the swing in free cash flow. This recovery occurred alongside higher revenue and lower capital expenditure relative to the prior quarter.
The positive operating cash flow directly enabled free cash flow to turn positive and the margin to strengthen.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, and operating cash flow moved from negative to positive, driving a substantial increase in free cash flow. Capital expenditure was lower than the prior quarter but slightly higher than a year ago, contributing to the improved free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher and all cash flow metrics improved significantly, with operating cash flow and free cash flow turning positive. Versus the same quarter one year earlier, revenue was higher and operating cash flow, free cash flow, and free cash flow margin all strengthened.
Monitor whether operating cash flow can sustain its positive level after the prior quarter's negative result.