Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but free cash flow and margin decreased substantially. The decline in operating cash flow relative to revenue was the primary factor in the weakened free cash flow conversion.
- Revenue rose while operating cash flow fell, leading to a lower free cash flow despite capital expenditure being marginally reduced from the prior quarter. The free cash flow margin weakened sharply compared to both the preceding quarter and the same quarter one year earlier.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and margin were all lower. Versus the same quarter one year ago, revenue was higher while operating cash flow, free cash flow, and margin were also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$761.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$862.4M
Cash generated by operations before capital spending.
CapEx
$100.7M
Capital spending and related asset purchases.
FCF margin
19.7%
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 |
|---|---|---|---|---|---|
| 2023-09-24 | $3.5B | $951.2M | $77.0M | $874.2M | 25.1% |
| 2023-12-24 | $3.8B | $1.5B | $115.3M | $1.3B | 35.6% |
| 2024-03-31 | $3.8B | $1.4B | $103.7M | $1.3B | 33.8% |
| 2024-06-30 | $3.9B | $862.4M | $100.7M | $761.7M | 19.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $880.5M | 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 Drop
Operating cash flow decreased significantly from both the prior quarter and the year-ago period, even though revenue improved. This reduction directly drove the lower free cash flow and margin.
The weaker operating cash flow was the strongest observable factor behind the decline in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow fell, leading to a lower free cash flow despite capital expenditure being marginally reduced from the prior quarter. The free cash flow margin weakened sharply compared to both the preceding quarter and the same quarter one year earlier.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and margin were all lower. Versus the same quarter one year ago, revenue was higher while operating cash flow, free cash flow, and margin were also lower.
Monitor the relationship between revenue growth and operating cash flow, as the decline in cash conversion despite higher revenue may indicate a shift in cash flow generation efficiency.