Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter and was slightly lower than a year ago. Operating cash flow weakened sharply, turning free cash flow negative despite a modest reduction in capital expenditure.
- Operating cash flow as a proportion of revenue fell significantly, resulting in a negative free cash flow margin. Capital expenditure remained relatively stable, so the conversion weakness was driven entirely by lower operating cash generation.
- Compared to the prior quarter, revenue was lower and operating cash flow dropped substantially, reversing a positive free cash flow position into a negative one. Versus the same quarter last year, revenue was slightly lower but operating cash flow was weaker, though free cash flow was similarly negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$411.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$36.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.3M
Cash generated by operations before capital spending.
CapEx
$44.0M
Capital spending and related asset purchases.
FCF margin
-6.1%
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 |
|---|---|---|---|---|---|
| 2023-07-02 | $684.4M | $142.8M | $39.3M | $103.5M | 15.1% |
| 2023-10-01 | $703.7M | $174.3M | $34.6M | $139.7M | 19.9% |
| 2023-12-31 | $670.6M | $248.8M | $44.3M | $204.4M | 30.5% |
| 2024-03-31 | $599.8M | $7.3M | $44.0M | -$36.7M | -6.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -57.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.3% | 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 Decline
Operating cash flow fell sharply from the prior quarter and was lower than a year ago, driven by a net use of cash from changes in operating assets and liabilities, particularly a decrease in accrued employee compensation and accounts payable.
This decline directly caused free cash flow to turn negative, despite stable capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue fell significantly, resulting in a negative free cash flow margin. Capital expenditure remained relatively stable, so the conversion weakness was driven entirely by lower operating cash generation.
Compared to the prior quarter, revenue was lower and operating cash flow dropped substantially, reversing a positive free cash flow position into a negative one. Versus the same quarter last year, revenue was slightly lower but operating cash flow was weaker, though free cash flow was similarly negative.
Monitor the trajectory of operating cash flow, as it is the primary factor behind the swing in free cash flow.