Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, supported by a significant improvement in operating cash flow. Revenue was stable compared to the same quarter last year, while the free cash flow margin strengthened.
- Operating cash flow increased substantially from the prior quarter and the year-ago quarter, driving free cash flow higher despite a slight rise in capital expenditure. The free cash flow margin improved to a positive level, reflecting better cash conversion from revenue.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow improved markedly, and free cash flow turned from negative to positive. Versus the same quarter one year earlier, revenue was stable, operating cash flow was higher, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$458.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$81.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$112.0M
Cash generated by operations before capital spending.
CapEx
$31.0M
Capital spending and related asset purchases.
FCF margin
7.4%
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 |
|---|---|---|---|---|---|
| 2024-01-31 | $1.1B | $265.0M | $69.0M | $196.0M | 18.3% |
| 2024-04-30 | $964.0M | $285.0M | $80.0M | $205.0M | 21.3% |
| 2024-07-31 | $951.0M | $17.0M | $41.0M | -$24.0M | -2.5% |
| 2024-10-31 | $1.1B | $112.0M | $31.0M | $81.0M | 7.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 31.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | 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 rose sharply from the prior quarter and the year-ago quarter, becoming the primary factor behind the positive free cash flow. This improvement occurred even as revenue remained broadly stable.
The stronger operating cash flow directly lifted free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased substantially from the prior quarter and the year-ago quarter, driving free cash flow higher despite a slight rise in capital expenditure. The free cash flow margin improved to a positive level, reflecting better cash conversion from revenue.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow improved markedly, and free cash flow turned from negative to positive. Versus the same quarter one year earlier, revenue was stable, operating cash flow was higher, and free cash flow was higher.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in subsequent quarters.