Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow margin both declined compared to the prior quarter and the same quarter last year. Operating cash flow decreased more sharply than revenue, while capital expenditure increased sequentially.
- The free cash flow margin fell as operating cash flow contracted relative to revenue. Capital expenditure rose from the prior quarter, further reducing free cash flow.
- Compared to the prior quarter, revenue was lower and operating cash flow was substantially lower, leading to a lower free cash flow margin. Versus the same quarter a year ago, revenue was lower and free cash flow margin was also lower, though capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$571.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$57.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$127.0M
Cash generated by operations before capital spending.
CapEx
$70.0M
Capital spending and related asset purchases.
FCF margin
3.9%
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 |
|---|---|---|---|---|---|
| 2022-12-30 | $1.9B | $251.0M | $79.0M | $172.0M | 9.1% |
| 2023-03-31 | $1.9B | $228.0M | $54.0M | $174.0M | 9.4% |
| 2023-06-30 | $1.6B | $218.0M | $50.0M | $168.0M | 10.5% |
| 2023-09-29 | $1.5B | $127.0M | $70.0M | $57.0M | 3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -31.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.9B | 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 decline
Operating cash flow decreased significantly from both the prior quarter and the year-ago quarter, while revenue declined more modestly. This drove the reduction in free cash flow and margin.
The lower cash conversion rate reduces the company's ability to generate free cash flow from its revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin fell as operating cash flow contracted relative to revenue. Capital expenditure rose from the prior quarter, further reducing free cash flow.
Compared to the prior quarter, revenue was lower and operating cash flow was substantially lower, leading to a lower free cash flow margin. Versus the same quarter a year ago, revenue was lower and free cash flow margin was also lower, though capital expenditure was lower.
Monitor the trend in operating cash flow relative to revenue, as the cash conversion rate has weakened.