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 the year-ago period. However, operating cash flow and free cash flow were lower than both comparison periods, and the free cash flow margin weakened.
- The company's cash conversion weakened as revenue rose while operating cash flow declined, leading to a lower free cash flow margin. Capital expenditure was mixed compared to the two prior periods.
- Compared to the prior quarter, operating cash flow and free cash flow decreased significantly, while revenue increased. Versus the same quarter last year, revenue was higher, but operating cash flow and free cash flow were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$634.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$27.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$95.0M
Cash generated by operations before capital spending.
CapEx
$68.0M
Capital spending and related asset purchases.
FCF margin
1.2%
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 |
|---|---|---|---|---|---|
| 2023-12-29 | $1.6B | $169.0M | $70.0M | $99.0M | 6.4% |
| 2024-03-29 | $1.7B | $188.0M | $60.0M | $128.0M | 7.7% |
| 2024-06-28 | $1.9B | $434.0M | $54.0M | $380.0M | 20.1% |
| 2024-09-27 | $2.2B | $95.0M | $68.0M | $27.0M | 1.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 8.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.4B | 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
Revenue growth did not translate into higher operating cash flow, resulting in a sharp drop in free cash flow.
Sustained low operating cash flow could pressure future capital allocation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company's cash conversion weakened as revenue rose while operating cash flow declined, leading to a lower free cash flow margin. Capital expenditure was mixed compared to the two prior periods.
Compared to the prior quarter, operating cash flow and free cash flow decreased significantly, while revenue increased. Versus the same quarter last year, revenue was higher, but operating cash flow and free cash flow were lower.
Monitor the trajectory of operating cash flow relative to revenue, as it declined despite higher revenue.