Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned positive after a negative prior quarter, driven by a swing in operating cash flow. Revenue was lower than both the prior and year-ago quarters, yet the free cash flow margin matched the year-ago level.
- Operating cash flow increased compared to the previous quarter and capital expenditure remained stable, resulting in positive free cash flow. The free cash flow margin improved from negative to positive and was consistent with the year-ago margin.
- Compared to the prior quarter, both operating cash flow and free cash flow improved from negative to positive, despite lower revenue. Relative to the same quarter a year ago, free cash flow was slightly lower, while the margin was equal and revenue was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$108.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$10.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$35.5M
Cash generated by operations before capital spending.
CapEx
$24.6M
Capital spending and related asset purchases.
FCF margin
3.5%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $317.6M | -$2.3M | $57.8M | -$60.1M | -18.9% |
| 2023-12-30 | $366.8M | -$1.5M | $31.0M | -$32.5M | -8.9% |
| 2024-03-30 | $366.5M | -$7.0M | $19.6M | -$26.6M | -7.3% |
| 2024-06-29 | $308.3M | $35.5M | $24.6M | $10.9M | 3.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -4.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | 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
The main driver of the quarter was the shift from negative operating cash flow in the prior quarter to positive in the current quarter. This improvement occurred even as revenue declined, highlighting a change in cash conversion efficiency.
The turnaround in operating cash flow was the primary factor enabling positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased compared to the previous quarter and capital expenditure remained stable, resulting in positive free cash flow. The free cash flow margin improved from negative to positive and was consistent with the year-ago margin.
Compared to the prior quarter, both operating cash flow and free cash flow improved from negative to positive, despite lower revenue. Relative to the same quarter a year ago, free cash flow was slightly lower, while the margin was equal and revenue was lower.
Monitor the trajectory of operating cash flow given the decline in revenue and its impact on sustaining positive free cash flow.