Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter, driven by a sharp improvement in operating cash flow, and contrasting with negative free cash flow in both the prior quarter and the year-ago period. The free cash flow margin also strengthened significantly.
- Revenue shifted from negative to positive, providing a strong base for operating cash flow, which similarly turned positive. Capital expenditure remained at a similar level, so the positive operating cash flow flowed through to free cash flow, which also turned positive, and the free cash flow margin improved markedly.
- Compared with the preceding quarter, revenue and operating cash flow improved substantially, and free cash flow turned from negative to positive. Versus the year-ago period, all metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—showed improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$781.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$250.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$366.0M
Cash generated by operations before capital spending.
CapEx
$116.0M
Capital spending and related asset purchases.
FCF margin
12.5%
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 |
|---|---|---|---|---|---|
| 2023-09-29 | $1.2B | -$626.0M | $124.0M | -$750.0M | -62.8% |
| 2023-12-29 | $4.6B | -$92.0M | $150.0M | -$242.0M | -5.3% |
| 2024-03-29 | -$1.5B | $58.0M | $97.0M | -$39.0M | 2.7% |
| 2024-06-28 | $2.0B | $366.0M | $116.0M | $250.0M | 12.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 641.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue and Operating Cash Flow Recovery
Revenue shifted from negative to positive, which was the primary factor enabling operating cash flow to also turn positive. This reversal directly supported the generation of positive free cash flow.
The recovery in revenue and operating cash flow allowed the company to report positive free cash flow after two consecutive periods of negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue shifted from negative to positive, providing a strong base for operating cash flow, which similarly turned positive. Capital expenditure remained at a similar level, so the positive operating cash flow flowed through to free cash flow, which also turned positive, and the free cash flow margin improved markedly.
Compared with the preceding quarter, revenue and operating cash flow improved substantially, and free cash flow turned from negative to positive. Versus the year-ago period, all metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—showed improvement.
The company has a remaining liability related to IRS settlements that is expected to be paid within the next twelve months.