Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Operating cash flow weakened significantly, leading to negative free cash flow, though the filing notes that including proceeds from asset sales free cash flow was positive.
- Conversion from revenue to operating cash flow was low, and capital expenditure exceeded operating cash flow, resulting in a negative free cash flow and a negative free cash flow margin.
- Compared to the prior quarter, operating cash flow and free cash flow were substantially lower, while capital expenditure also decreased. Versus the same quarter a year earlier, revenue was higher but operating cash flow was lower, while free cash flow improved slightly as capital expenditure fell more than operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$69.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$53.0M
Cash generated by operations before capital spending.
CapEx
$122.0M
Capital spending and related asset purchases.
FCF margin
-0.3%
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 |
|---|---|---|---|---|---|
| 2023-12-30 | $19.3B | $769.0M | $176.0M | $593.0M | 3.1% |
| 2024-03-30 | $19.4B | $517.0M | $183.0M | $334.0M | 1.7% |
| 2024-06-29 | $20.6B | $1.6B | $302.0M | $1.3B | 6.4% |
| 2024-09-28 | $20.5B | $53.0M | $122.0M | -$69.0M | -0.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -14.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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 Weakness
Operating cash flow declined sharply from the prior quarter and remained below the year-ago level, despite higher revenue. This was the primary factor driving the negative free cash flow.
The low operating cash flow constrained free cash flow generation and led to a negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Conversion from revenue to operating cash flow was low, and capital expenditure exceeded operating cash flow, resulting in a negative free cash flow and a negative free cash flow margin.
Compared to the prior quarter, operating cash flow and free cash flow were substantially lower, while capital expenditure also decreased. Versus the same quarter a year earlier, revenue was higher but operating cash flow was lower, while free cash flow improved slightly as capital expenditure fell more than operating cash flow.
Monitor the level of operating cash flow relative to revenue, as it was the key factor behind the negative free cash flow.