Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the same quarter one year earlier but higher than the preceding quarter. Free cash flow and free cash flow margin improved significantly compared to both prior periods.
- Operating cash flow turned positive from negative in the prior quarter and was higher than the year-ago quarter, driving free cash flow positive. Capital expenditure was stable relative to both comparison periods, and the free cash flow margin improved substantially.
- Compared to the preceding quarter, revenue was higher while operating cash flow and free cash flow shifted from negative to positive, resulting in a much improved free cash flow margin. Versus the same quarter one year earlier, revenue was lower but operating cash flow and free cash flow were higher, and the free cash flow margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$172.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$196.6M
Cash generated by operations before capital spending.
CapEx
$24.1M
Capital spending and related asset purchases.
FCF margin
24.8%
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 |
|---|---|---|---|---|---|
| 2023-04-02 | $674.9M | $63.5M | $20.9M | $42.5M | 6.3% |
| 2023-07-02 | $709.1M | -$135.3M | $13.9M | -$149.3M | -21.1% |
| 2023-10-01 | $670.7M | -$33.5M | $22.4M | -$55.8M | -8.3% |
| 2023-12-31 | $695.9M | $196.6M | $24.1M | $172.5M | 24.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 219.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | 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 Recovery
Operating cash flow turned positive this quarter after being negative in the prior quarter, and was higher than the year-ago quarter. This was the strongest observable driver of free cash flow improvement.
The recovery in operating cash flow directly enabled positive free cash flow and a higher free cash flow margin.
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 in the prior quarter and was higher than the year-ago quarter, driving free cash flow positive. Capital expenditure was stable relative to both comparison periods, and the free cash flow margin improved substantially.
Compared to the preceding quarter, revenue was higher while operating cash flow and free cash flow shifted from negative to positive, resulting in a much improved free cash flow margin. Versus the same quarter one year earlier, revenue was lower but operating cash flow and free cash flow were higher, and the free cash flow margin strengthened.
Monitor whether operating cash flow can sustain its positive level given the prior quarter's negative reading.