Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sequentially and year-over-year as lower operating cash flow more than offset higher capital spending. Revenue was higher than both the prior quarter and the same quarter last year, but cash conversion declined.
- Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure was higher versus both periods. This combination drove a decline in free cash flow and a weakened free cash flow margin despite higher revenue.
- Compared to the immediately preceding quarter, free cash flow margin decreased from a higher level, driven by lower operating cash flow and higher capital expenditure. Versus the same quarter one year earlier, free cash flow margin also declined, as operating cash flow decreased and capital expenditure rose.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$453.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$114.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$166.3M
Cash generated by operations before capital spending.
CapEx
$51.8M
Capital spending and related asset purchases.
FCF margin
15.5%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $670.6M | $248.8M | $44.3M | $204.4M | 30.5% |
| 2024-03-31 | $599.8M | $7.3M | $44.0M | -$36.7M | -6.1% |
| 2024-06-30 | $729.9M | $216.1M | $44.8M | $171.2M | 23.5% |
| 2024-09-29 | $737.3M | $166.3M | $51.8M | $114.4M | 15.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 78.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.0% | 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 Weakening
Operating cash flow was lower sequentially and year-over-year, even as revenue grew. The filing notes an increase in accounts receivable driven by higher sales in the quarter, which partially offset improvements in other assets and inventory.
The lower operating cash flow was the primary observable factor behind the weakened free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure was higher versus both periods. This combination drove a decline in free cash flow and a weakened free cash flow margin despite higher revenue.
Compared to the immediately preceding quarter, free cash flow margin decreased from a higher level, driven by lower operating cash flow and higher capital expenditure. Versus the same quarter one year earlier, free cash flow margin also declined, as operating cash flow decreased and capital expenditure rose.
Monitor the trajectory of operating cash flow, which decreased both sequentially and year-over-year despite higher revenue.