Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. Free cash flow remained negative but improved compared to both periods, driven by a higher operating cash flow and a lower capital expenditure relative to the prior quarter.
- Operating cash flow turned positive from negative a year ago and was lower than the prior quarter, while capital expenditure decreased from the prior quarter but increased year over year. The resulting free cash flow margin improved from negative levels in both comparison periods, though it remained negative.
- Compared to the prior quarter, revenue was higher and free cash flow was less negative, with a higher operating cash flow and a lower capital expenditure. Versus the same quarter last year, revenue was higher and free cash flow was less negative, driven by a positive operating cash flow versus a negative one a year ago, partially offset by higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$66.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$15.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$24.3M
Cash generated by operations before capital spending.
CapEx
$40.2M
Capital spending and related asset purchases.
FCF margin
-4.0%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-28 | $402.2M | $24.3M | $40.2M | -$15.9M | -4.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 26.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.0% | 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
Operating cash flow turned positive this quarter compared to a negative figure in the same quarter last year, and while it was lower than the prior quarter, the improvement from the year-ago period was the strongest observable driver of the less negative free cash flow.
The shift from negative to positive operating cash flow directly reduced the free cash flow deficit compared to the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned positive from negative a year ago and was lower than the prior quarter, while capital expenditure decreased from the prior quarter but increased year over year. The resulting free cash flow margin improved from negative levels in both comparison periods, though it remained negative.
Compared to the prior quarter, revenue was higher and free cash flow was less negative, with a higher operating cash flow and a lower capital expenditure. Versus the same quarter last year, revenue was higher and free cash flow was less negative, driven by a positive operating cash flow versus a negative one a year ago, partially offset by higher capital expenditure.
Monitor the trend in capital expenditure, which decreased from the prior quarter but remained higher than the year-ago level.