Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined relative to both the prior quarter and the same quarter last year. Operating cash flow and free cash flow decreased in line with the revenue trend, though free cash flow margin showed mixed movement.
- Operating cash flow amounted to a portion of revenue, while capital expenditure consumed a smaller share, resulting in free cash flow slightly below the prior period but with a higher free cash flow margin compared to the same quarter last year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, although free cash flow margin increased. Versus the same quarter one year earlier, revenue and operating cash flow were lower, but free cash flow was marginally lower with an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$249.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$273.4M
Cash generated by operations before capital spending.
CapEx
$24.4M
Capital spending and related asset purchases.
FCF margin
27.5%
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 |
|---|---|---|---|---|---|
| 2023-09-29 | $1.2B | $365.5M | $70.1M | $295.4M | 24.2% |
| 2023-12-29 | $1.2B | $774.9M | $22.2M | $752.7M | 62.6% |
| 2024-03-29 | $1.0B | $300.3M | $27.6M | $272.7M | 26.1% |
| 2024-06-28 | $905.5M | $273.4M | $24.4M | $249.0M | 27.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 206.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $269.4M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue decline impact
Revenue was the most significant observable factor, decreasing from both the prior quarter and the year-ago period, which directly corresponded to lower operating cash flow and free cash flow.
The revenue decline was the primary driver of reduced cash generation, partially offset by a lower capital expenditure outlay.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow amounted to a portion of revenue, while capital expenditure consumed a smaller share, resulting in free cash flow slightly below the prior period but with a higher free cash flow margin compared to the same quarter last year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, although free cash flow margin increased. Versus the same quarter one year earlier, revenue and operating cash flow were lower, but free cash flow was marginally lower with an improved free cash flow margin.
The trajectory of revenue relative to operating cash flow conversion should be monitored given the mixed margin performance.