Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive from a negative prior quarter, driving a substantial improvement in free cash flow and margin. Revenue increased compared to both the prior quarter and the same quarter last year.
- Revenue rose while operating cash flow shifted from negative to positive, resulting in a positive free cash flow and a higher free cash flow margin. Capital expenditure increased but remained modest relative to operating cash flow.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved from negative to positive. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$364.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$408.9M
Cash generated by operations before capital spending.
CapEx
$44.3M
Capital spending and related asset purchases.
FCF margin
6.1%
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 | $3.7B | -$595.1M | $14.7M | -$609.8M | -16.6% |
| 2024-03-31 | $3.9B | -$1.5B | $92.9M | -$1.6B | -41.7% |
| 2024-06-30 | $5.4B | -$647.8M | $14.0M | -$661.8M | -12.4% |
| 2024-09-30 | $5.9B | $408.9M | $44.3M | $364.6M | 6.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 85.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Reversal
Operating cash flow moved from a negative position in the prior quarter to a positive figure, which was the primary factor behind the swing to positive free cash flow. The filing notes that recent liquidity drivers included increased working capital needs due to higher inventory levels for growing revenues and longer supply chain lead times.
This reversal was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow shifted from negative to positive, resulting in a positive free cash flow and a higher free cash flow margin. Capital expenditure increased but remained modest relative to operating cash flow.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved from negative to positive. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor the level of capital expenditure relative to operating cash flow, as it increased from both the prior quarter and the year-ago quarter.