Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Free cash flow turned strongly positive compared to a year ago, though it decreased modestly from the preceding quarter.
- Operating cash flow was positive and significantly higher than the year-ago period, while capital expenditure remained stable. This resulted in a positive free cash flow margin, a marked improvement from the negative margin a year earlier.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased slightly. Compared to the same quarter last year, revenue was higher, and operating cash flow, free cash flow, and free cash flow margin all improved substantially from negative levels.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$564.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$125.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$147.9M
Cash generated by operations before capital spending.
CapEx
$22.3M
Capital spending and related asset purchases.
FCF margin
18.4%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $695.9M | $196.6M | $24.1M | $172.5M | 24.8% |
| 2024-03-31 | $649.9M | $147.6M | $17.8M | $129.7M | 20.0% |
| 2024-06-30 | $691.7M | $158.6M | $22.0M | $136.6M | 19.7% |
| 2024-09-29 | $684.0M | $147.9M | $22.3M | $125.6M | 18.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | 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 from negative a year ago to positive this quarter, which was the primary factor behind the swing to positive free cash flow. Capital expenditure remained essentially unchanged across all periods.
This improvement in operating cash flow directly enabled positive free cash flow and a positive margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was positive and significantly higher than the year-ago period, while capital expenditure remained stable. This resulted in a positive free cash flow margin, a marked improvement from the negative margin a year earlier.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased slightly. Compared to the same quarter last year, revenue was higher, and operating cash flow, free cash flow, and free cash flow margin all improved substantially from negative levels.
Monitor whether operating cash flow can sustain its positive level relative to revenue in the coming quarters.