Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply from the prior quarter and turned positive from a year ago, driving free cash flow to a higher level. Revenue was stable across both comparison periods.
- With revenue unchanged, the increase in operating cash flow and lower capital expenditure led to a higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, operating cash flow and free cash flow were higher, while capital expenditure was slightly lower. Versus the same quarter last year, operating cash flow and free cash flow turned from negative to positive, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$442.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$278.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$288.0M
Cash generated by operations before capital spending.
CapEx
$10.0M
Capital spending and related asset purchases.
FCF margin
22.8%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $956.0M | -$35.0M | $14.0M | -$49.0M | -5.1% |
| 2023-12-31 | $1.0B | $141.0M | $39.0M | $102.0M | 10.1% |
| 2024-03-30 | $1.2B | $125.0M | $14.0M | $111.0M | 9.4% |
| 2024-06-29 | $1.2B | $288.0M | $10.0M | $278.0M | 22.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 246.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.8B | 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 Recovery
Operating cash flow increased substantially from the prior quarter and turned positive compared to a year ago, while revenue remained flat. This was the strongest observable driver of free cash flow improvement.
The improvement in operating cash flow directly lifted free cash flow and margin to higher levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged, the increase in operating cash flow and lower capital expenditure led to a higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, operating cash flow and free cash flow were higher, while capital expenditure was slightly lower. Versus the same quarter last year, operating cash flow and free cash flow turned from negative to positive, and capital expenditure was lower.
Monitor whether operating cash flow can sustain its current level given the stable revenue base.