Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from the prior quarter and increased from the same quarter last year, driven by higher operating cash flow. Revenue was lower than a year ago but higher than the previous quarter.
- Operating cash flow rose sharply from both the prior quarter and the year-ago period, while capital expenditure was slightly higher than the prior quarter but lower than a year ago. The resulting free cash flow margin strengthened compared to both periods.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, with free cash flow margin turning positive from near zero. Versus the same quarter last year, revenue was lower, but operating cash flow and free cash flow were higher, leading to an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$478.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$661.0M
Cash generated by operations before capital spending.
CapEx
$183.0M
Capital spending and related asset purchases.
FCF margin
5.1%
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 |
|---|---|---|---|---|---|
| 2023-10-28 | $9.8B | $109.0M | $217.0M | -$108.0M | -1.1% |
| 2024-02-03 | $14.6B | $1.2B | $183.0M | $997.0M | 6.8% |
| 2024-05-04 | $8.8B | $156.0M | $152.0M | $4.0M | 0.0% |
| 2024-08-03 | $9.3B | $661.0M | $183.0M | $478.0M | 5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 164.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $217.0M | 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 Strength
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This occurred even as revenue was lower than a year ago.
The higher operating cash flow drove free cash flow and margin higher compared to both the prior quarter and the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose sharply from both the prior quarter and the year-ago period, while capital expenditure was slightly higher than the prior quarter but lower than a year ago. The resulting free cash flow margin strengthened compared to both periods.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, with free cash flow margin turning positive from near zero. Versus the same quarter last year, revenue was lower, but operating cash flow and free cash flow were higher, leading to an improved free cash flow margin.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in the coming quarters.