Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow declined compared to both periods, resulting in a weakened free cash flow margin.
- Revenue remained relatively stable, but operating cash flow decreased significantly, leading to lower free cash flow. The free cash flow margin contracted as a result.
- Compared to the prior quarter, operating cash flow and free cash flow were both lower, and the margin weakened. Versus the same quarter last year, operating cash flow and free cash flow were also lower, with a reduced margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$728.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$137.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$208.0M
Cash generated by operations before capital spending.
CapEx
$71.0M
Capital spending and related asset purchases.
FCF margin
4.0%
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 | $3.9B | $549.0M | $178.0M | $371.0M | 9.5% |
| 2024-03-30 | $3.1B | -$7.0M | $66.0M | -$73.0M | -2.3% |
| 2024-06-29 | $3.5B | $367.0M | $74.0M | $293.0M | 8.3% |
| 2024-09-28 | $3.4B | $208.0M | $71.0M | $137.0M | 4.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 61.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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 decreased from both the prior quarter and the year-ago quarter, while capital expenditure remained relatively stable. This decline was the main factor behind the lower free cash flow and margin.
The drop in operating cash flow weakened cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained relatively stable, but operating cash flow decreased significantly, leading to lower free cash flow. The free cash flow margin contracted as a result.
Compared to the prior quarter, operating cash flow and free cash flow were both lower, and the margin weakened. Versus the same quarter last year, operating cash flow and free cash flow were also lower, with a reduced margin.
Monitor operating cash flow trends, given the filing's discussion of risks related to U.S. government funding and defense budget changes.