Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased compared to both the prior quarter and the same quarter last year, driven by lower operating cash flow. The free cash flow margin weakened as a result.
- Revenue remained stable, but operating cash flow decreased, resulting in lower free cash flow and a decline in free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and margin were lower. Versus the same quarter one year earlier, free cash flow was also lower and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$798.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$215.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$224.0M
Cash generated by operations before capital spending.
CapEx
$9.0M
Capital spending and related asset purchases.
FCF margin
16.4%
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 | $1.3B | $263.0M | $22.0M | $241.0M | 18.7% |
| 2024-03-29 | $1.2B | $115.0M | $13.0M | $102.0M | 8.2% |
| 2024-06-28 | $1.3B | $251.0M | $11.0M | $240.0M | 18.6% |
| 2024-09-27 | $1.3B | $224.0M | $9.0M | $215.0M | 16.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.4B | 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 same quarter last year, while revenue was unchanged. This directly reduced free cash flow and margin.
Further changes in operating cash flow will directly affect the company's cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable, but operating cash flow decreased, resulting in lower free cash flow and a decline in free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and margin were lower. Versus the same quarter one year earlier, free cash flow was also lower and margin weakened.
Monitor operating cash flow trends as they are the primary driver of free cash flow changes.