Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter but lower than the same quarter last year. Free cash flow turned negative this quarter, driven by a negative operating cash flow, while capital expenditure was slightly higher than the prior quarter.
- Operating cash flow was negative, resulting in negative free cash flow and a negative free cash flow margin, indicating cash conversion weakened significantly this quarter relative to revenue.
- Compared to the prior quarter, operating cash flow and free cash flow both turned from positive to negative, and the free cash flow margin declined sharply. Versus the same quarter last year, operating cash flow was lower, free cash flow was more negative, and the margin worsened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$449.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$256.0M
Cash generated by operations before capital spending.
CapEx
$193.0M
Capital spending and related asset purchases.
FCF margin
-4.8%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-11-02 | $9.4B | -$256.0M | $193.0M | -$449.0M | -4.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -164.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$513.0M | 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 Turned Negative
Operating cash flow shifted from positive in both the prior quarter and the year-ago quarter to negative this quarter, which was the strongest observable driver of the negative free cash flow.
This directly caused free cash flow to be negative and the free cash flow margin to decline.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, resulting in negative free cash flow and a negative free cash flow margin, indicating cash conversion weakened significantly this quarter relative to revenue.
Compared to the prior quarter, operating cash flow and free cash flow both turned from positive to negative, and the free cash flow margin declined sharply. Versus the same quarter last year, operating cash flow was lower, free cash flow was more negative, and the margin worsened.
Monitor whether operating cash flow returns to positive levels in the next quarter, as it is the primary driver of free cash flow.