Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative this quarter, driven by operating cash flow that was lower than capital expenditure. Revenue was slightly higher than a year ago, but the cash conversion weakened significantly.
- Revenue was higher than both the prior quarter and the year-ago quarter, yet operating cash flow was lower than both periods, resulting in a negative free cash flow margin. Capital expenditure was slightly lower than the prior quarter but higher than a year ago.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow was sharply lower, and free cash flow turned from positive to negative. Compared to the same quarter one year earlier, revenue was slightly higher, operating cash flow was lower, and free cash flow was more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$534.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$101.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$86.3M
Cash generated by operations before capital spending.
CapEx
$188.2M
Capital spending and related asset purchases.
FCF margin
-2.9%
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 |
|---|---|---|---|---|---|
| 2023-12-30 | $3.7B | $396.1M | $227.2M | $168.9M | 4.6% |
| 2024-03-30 | $3.4B | $257.4M | $157.2M | $100.2M | 3.0% |
| 2024-06-29 | $4.2B | $559.9M | $192.6M | $367.3M | 8.6% |
| 2024-09-28 | $3.5B | $86.3M | $188.2M | -$101.9M | -2.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -42.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | 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 was substantially lower than both the prior quarter and the year-ago quarter, despite revenue being higher than a year ago. This was the primary factor behind the negative free cash flow.
The weakened operating cash flow drove free cash flow from positive to negative and widened the negative margin compared to a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, yet operating cash flow was lower than both periods, resulting in a negative free cash flow margin. Capital expenditure was slightly lower than the prior quarter but higher than a year ago.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow was sharply lower, and free cash flow turned from positive to negative. Compared to the same quarter one year earlier, revenue was slightly higher, operating cash flow was lower, and free cash flow was more negative.
Monitor whether operating cash flow can recover to a level that covers capital expenditure in upcoming quarters.