Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved compared to both the prior quarter and the year-ago quarter, while operating cash flow weakened sequentially but improved sharply from a year ago. Free cash flow turned negative in the current quarter after a positive prior quarter, though it was significantly less negative than the year-ago period.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure decreased compared to both the prior quarter and the year-ago quarter. Free cash flow shifted from positive in the prior quarter to negative, but was significantly improved versus the deeply negative year-ago figure. Free cash flow margin weakened sequentially but improved substantially year over year.
- Compared to the prior quarter, revenue was higher but operating cash flow was lower, resulting in a weakened free cash flow margin. Versus the year-ago quarter, revenue was higher and operating cash flow was higher, leading to a substantially improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$93.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$62.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$34.0M
Cash generated by operations before capital spending.
CapEx
$96.0M
Capital spending and related asset purchases.
FCF margin
-2.8%
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 |
|---|---|---|---|---|---|
| 2023-12-29 | $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% |
| 2024-09-27 | $2.2B | $34.0M | $96.0M | -$62.0M | -2.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -12.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth and Cash Flow Improvement
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow, while lower than the prior quarter, improved markedly from a deeply negative year-ago level. Free cash flow also improved substantially year over year.
The strong revenue growth and cash flow improvement versus a year ago are the most observable positive drivers in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure decreased compared to both the prior quarter and the year-ago quarter. Free cash flow shifted from positive in the prior quarter to negative, but was significantly improved versus the deeply negative year-ago figure. Free cash flow margin weakened sequentially but improved substantially year over year.
Compared to the prior quarter, revenue was higher but operating cash flow was lower, resulting in a weakened free cash flow margin. Versus the year-ago quarter, revenue was higher and operating cash flow was higher, leading to a substantially improved free cash flow margin.
Monitor the continuation of revenue growth and whether operating cash flow can recover to prior quarter levels.