Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow turned positive from a year ago, driving free cash flow to a positive level, though margin slightly narrowed from the prior quarter.
- Operating cash flow grew relative to revenue, resulting in a higher free cash flow margin compared to the year-ago period. Capital expenditure increased, but the conversion of revenue to free cash flow remained strong.
- Compared to the prior quarter, revenue and operating cash flow were higher, while free cash flow was slightly lower due to higher capital expenditure. Compared to the same quarter last year, all metrics improved significantly, with operating cash flow turning positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$768.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$277.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$294.0M
Cash generated by operations before capital spending.
CapEx
$17.0M
Capital spending and related asset purchases.
FCF margin
22.1%
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 | $1.0B | $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% |
| 2024-09-28 | $1.3B | $294.0M | $17.0M | $277.0M | 22.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 202.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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 Improvement
Operating cash flow increased from the prior quarter and was significantly higher than the year-ago period, when it was negative. This improvement was the primary driver of the positive free cash flow.
The sustained strength in operating cash flow supports continued free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew relative to revenue, resulting in a higher free cash flow margin compared to the year-ago period. Capital expenditure increased, but the conversion of revenue to free cash flow remained strong.
Compared to the prior quarter, revenue and operating cash flow were higher, while free cash flow was slightly lower due to higher capital expenditure. Compared to the same quarter last year, all metrics improved significantly, with operating cash flow turning positive.
The increase in capital expenditure relative to the prior quarter bears watching as it partially offset the improvement in operating cash flow.