Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter, and operating cash flow and free cash flow both improved. The free cash flow margin widened versus the prior quarter but remained narrower than the same quarter last year.
- With higher operating cash flow relative to revenue and a lower capital expenditure amount, conversion into free cash flow strengthened sequentially. The free cash flow margin improved versus the prior quarter.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was lower; operating cash flow, free cash flow, and free cash flow margin also declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$452.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$128.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$188.0M
Cash generated by operations before capital spending.
CapEx
$60.0M
Capital spending and related asset purchases.
FCF margin
7.7%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $1.6B | $218.0M | $50.0M | $168.0M | 10.5% |
| 2023-09-29 | $1.5B | $127.0M | $70.0M | $57.0M | 3.9% |
| 2023-12-29 | $1.6B | $169.0M | $70.0M | $99.0M | 6.4% |
| 2024-03-29 | $1.7B | $188.0M | $60.0M | $128.0M | 7.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 512.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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.
Revenue and Operating Cash Flow Growth
Revenue and operating cash flow both increased sequentially, while capital expenditure declined, resulting in higher free cash flow and an improved free cash flow margin relative to the prior quarter.
The sequential rise in free cash flow and margin was primarily supported by stronger revenue and operating cash flow coupled with reduced capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With higher operating cash flow relative to revenue and a lower capital expenditure amount, conversion into free cash flow strengthened sequentially. The free cash flow margin improved versus the prior quarter.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was lower; operating cash flow, free cash flow, and free cash flow margin also declined.
Monitor whether operating cash flow can sustain its improvement relative to the prior period, as it is a key component of free cash flow generation.