Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year but weakened sharply from the prior quarter. The cash conversion rate was lower than the preceding quarter despite higher revenue.
- Revenue was higher than both the prior quarter and the year-ago quarter, yet operating cash flow was lower than the prior quarter, resulting in a free cash flow margin that weakened sequentially but improved year-over-year.
- Compared to the prior quarter, free cash flow and free cash flow margin were lower, driven by a decrease in operating cash flow despite higher revenue. Versus the same quarter last year, free cash flow and margin were higher, with operating cash flow and revenue both improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$943.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$55.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$97.2M
Cash generated by operations before capital spending.
CapEx
$41.7M
Capital spending and related asset purchases.
FCF margin
3.2%
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 | $1.9B | $605.1M | $42.5M | $562.6M | 29.1% |
| 2024-03-30 | $1.6B | $121.0M | $39.9M | $81.1M | 5.2% |
| 2024-06-29 | $1.5B | $277.3M | $33.4M | $243.9M | 16.1% |
| 2024-09-28 | $1.7B | $97.2M | $41.7M | $55.5M | 3.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 37.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | $213.5M | 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 Volatility
Operating cash flow was lower than the prior quarter even though revenue was higher, indicating a shift in cash conversion efficiency. This was the strongest observable driver of the sequential decline in free cash flow.
If operating cash flow does not recover in line with revenue, free cash flow margin may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, yet operating cash flow was lower than the prior quarter, resulting in a free cash flow margin that weakened sequentially but improved year-over-year.
Compared to the prior quarter, free cash flow and free cash flow margin were lower, driven by a decrease in operating cash flow despite higher revenue. Versus the same quarter last year, free cash flow and margin were higher, with operating cash flow and revenue both improved.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite revenue growth.