Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to the prior quarter and the same quarter a year earlier. Operating cash flow improved year over year and was higher than the prior quarter, but a substantial increase in capital expenditure led to negative free cash flow and a weakened free cash flow margin.
- Revenue was higher, and operating cash flow turned positive compared to the same quarter a year earlier, while also rising from the prior quarter. However, capital expenditure was significantly higher than in both periods, resulting in negative free cash flow for the current quarter.
- Compared to the prior quarter, revenue and operating cash flow were higher, but capital expenditure was much higher, flipping free cash flow from positive to negative. Versus the same quarter a year earlier, revenue and operating cash flow improved, capital expenditure was higher, and free cash flow was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$82.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$34.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$39.6M
Cash generated by operations before capital spending.
CapEx
$74.1M
Capital spending and related asset purchases.
FCF margin
-10.2%
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 |
|---|---|---|---|---|---|
| 2023-12-30 | $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% |
| 2024-09-28 | $336.9M | $39.6M | $74.1M | -$34.5M | -10.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 41.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 22.0% | 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.
Capital Expenditure Increase
Capital expenditure rose substantially compared to both the prior quarter and the same quarter a year earlier. This increase more than offset the improvement in operating cash flow, driving free cash flow negative.
Despite higher revenue and stronger operating cash flow, the elevated capital expenditure was the strongest observable driver of the negative free cash flow this quarter.
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 turned positive compared to the same quarter a year earlier, while also rising from the prior quarter. However, capital expenditure was significantly higher than in both periods, resulting in negative free cash flow for the current quarter.
Compared to the prior quarter, revenue and operating cash flow were higher, but capital expenditure was much higher, flipping free cash flow from positive to negative. Versus the same quarter a year earlier, revenue and operating cash flow improved, capital expenditure was higher, and free cash flow was less negative.
Monitor the trajectory of capital expenditure, as its elevated level was the primary factor behind the swing to negative free cash flow.