Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow improved sequentially but remained below the prior year's levels. The free cash flow margin strengthened compared to the previous quarter, though it was lower than a year ago.
- Operating cash flow increased relative to revenue, and capital expenditure declined, resulting in a higher free cash flow margin than the prior quarter. Compared to the same quarter last year, operating cash flow was lower and capital expenditure was slightly reduced, leading to a weaker free cash flow margin.
- Sequentially, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, while capital expenditure was lower. Year over year, revenue, operating cash flow, free cash flow, and margin were lower, with capital expenditure also slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$370.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$139.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$174.3M
Cash generated by operations before capital spending.
CapEx
$34.6M
Capital spending and related asset purchases.
FCF margin
19.9%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $731.8M | $183.4M | $34.6M | $148.8M | 20.3% |
| 2023-04-02 | $617.5M | $19.3M | $41.4M | -$22.1M | -3.6% |
| 2023-07-02 | $684.4M | $142.8M | $39.3M | $103.5M | 15.1% |
| 2023-10-01 | $703.7M | $174.3M | $34.6M | $139.7M | 19.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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.
Sequential operating cash flow growth
Operating cash flow increased more than revenue from the prior quarter, driving a higher free cash flow margin. Capital expenditure also decreased, further supporting free cash flow.
This improvement in operating cash flow was the primary factor behind the sequential increase in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to revenue, and capital expenditure declined, resulting in a higher free cash flow margin than the prior quarter. Compared to the same quarter last year, operating cash flow was lower and capital expenditure was slightly reduced, leading to a weaker free cash flow margin.
Sequentially, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, while capital expenditure was lower. Year over year, revenue, operating cash flow, free cash flow, and margin were lower, with capital expenditure also slightly lower.
Monitor prepayments to contract manufacturers, which increased during the nine-month period as noted in the filing.