Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year, driven by higher operating cash flow. However, free cash flow and margin weakened relative to the immediately preceding quarter.
- Revenue was lower than both the prior quarter and the year-ago quarter, yet operating cash flow was higher than a year ago. Capital expenditure increased from the prior quarter, resulting in free cash flow that was higher year over year but lower sequentially.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Compared to the same quarter last year, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$406.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$160.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$270.7M
Cash generated by operations before capital spending.
CapEx
$110.7M
Capital spending and related asset purchases.
FCF margin
4.1%
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 |
|---|---|---|---|---|---|
| 2024-01-31 | $3.3B | $122.8M | $149.8M | -$27.0M | -0.8% |
| 2024-04-30 | $3.6B | $288.4M | $196.3M | $92.1M | 2.6% |
| 2024-07-31 | $4.1B | $281.4M | $100.6M | $180.8M | 4.4% |
| 2024-10-31 | $3.9B | $270.7M | $110.7M | $160.0M | 4.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.4B | 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 was higher than the same quarter last year despite lower revenue, supporting improved free cash flow year over year.
This was the strongest observable driver of the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter, yet operating cash flow was higher than a year ago. Capital expenditure increased from the prior quarter, resulting in free cash flow that was higher year over year but lower sequentially.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Compared to the same quarter last year, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trend in capital expenditure, which increased from the prior quarter and was slightly higher than a year ago.