Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to the same quarter a year ago, supported by higher operating cash flow and lower capital expenditure. The company stated that it expects to meet cash needs through operating cash flows, cash on hand, or short-term borrowings and believes its liquidity is sufficient to operate the business.
- Revenue was slightly higher than both the prior quarter and the year-ago quarter. Operating cash flow improved substantially from a year ago but decreased from the previous quarter, while capital expenditure was lower than both periods. The free cash flow margin improved from negative to positive year over year but weakened sequentially.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by a decline in operating cash flow. Compared to the same quarter one year earlier, free cash flow and margin improved markedly, reflecting higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$369.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$617.0M
Cash generated by operations before capital spending.
CapEx
$248.0M
Capital spending and related asset purchases.
FCF margin
2.7%
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 | $13.3B | $1.3B | $354.0M | $946.0M | 7.1% |
| 2024-03-30 | $13.1B | -$123.0M | $267.0M | -$390.0M | -3.0% |
| 2024-06-29 | $13.4B | $796.0M | $263.0M | $533.0M | 4.0% |
| 2024-09-28 | $13.6B | $617.0M | $248.0M | $369.0M | 2.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 103.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 recovery
Operating cash flow in the current quarter was higher than the year-ago quarter, while capital expenditure was lower. This combination drove free cash flow from negative to positive year over year.
The improvement in operating cash flow was the primary factor behind the swing to positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than both the prior quarter and the year-ago quarter. Operating cash flow improved substantially from a year ago but decreased from the previous quarter, while capital expenditure was lower than both periods. The free cash flow margin improved from negative to positive year over year but weakened sequentially.
Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by a decline in operating cash flow. Compared to the same quarter one year earlier, free cash flow and margin improved markedly, reflecting higher operating cash flow and lower capital expenditure.
Monitor the trajectory of operating cash flow, as its sequential decline weighed on free cash flow despite stable revenue.