Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was nearly unchanged from the same quarter last year, but lower operating cash flow and reduced capital expenditure led to a weaker free cash flow margin. Compared to the prior quarter, revenue grew, operating cash flow improved, and capital expenditure fell, resulting in a stronger free cash flow margin.
- Revenue was stable compared to the year-ago quarter, while operating cash flow was lower and capital expenditure was also lower, resulting in lower free cash flow and a weaker margin. Relative to the prior quarter, revenue was higher, operating cash flow higher, capital expenditure lower, leading to higher free cash flow and an improved margin.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower, yielding a strengthened free cash flow margin. Versus the same quarter one year earlier, revenue was slightly lower, operating cash flow and free cash flow were lower, and the margin weakened, despite a reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$321.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$98.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$180.1M
Cash generated by operations before capital spending.
CapEx
$81.3M
Capital spending and related asset purchases.
FCF margin
13.2%
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 | $732.0M | $239.1M | $108.7M | $130.4M | 17.8% |
| 2024-03-31 | $695.4M | $118.2M | $90.6M | $27.6M | 4.0% |
| 2024-06-30 | $702.1M | $165.0M | $100.2M | $64.8M | 9.2% |
| 2024-09-30 | $746.9M | $180.1M | $81.3M | $98.8M | 13.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 72.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $288.3M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower Capital Expenditure
Capital expenditure decreased compared to the prior quarter, while operating cash flow increased, leading to a significant improvement in free cash flow.
This shift resulted in a higher free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the year-ago quarter, while operating cash flow was lower and capital expenditure was also lower, resulting in lower free cash flow and a weaker margin. Relative to the prior quarter, revenue was higher, operating cash flow higher, capital expenditure lower, leading to higher free cash flow and an improved margin.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower, yielding a strengthened free cash flow margin. Versus the same quarter one year earlier, revenue was slightly lower, operating cash flow and free cash flow were lower, and the margin weakened, despite a reduction in capital expenditure.
Monitor capital expenditure levels, as the company's filing stated spending increased for additional manufacturing capacity to meet future customer demand.