Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue in the current quarter was comparable to the same period a year earlier, while free cash flow improved markedly from both the preceding quarter and the year-ago quarter. Operating cash flow turned positive after a negative result in the prior quarter.
- Operating cash flow relative to revenue increased substantially, leading to a free cash flow margin that was higher than both the prior quarter and the same quarter last year.
- Compared to the prior quarter, revenue was higher and operating cash flow shifted from negative to positive, resulting in a much higher free cash flow. Versus the same quarter one year earlier, revenue was similar but operating cash flow and free cash flow were both higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$377.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$265.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$349.4M
Cash generated by operations before capital spending.
CapEx
$83.5M
Capital spending and related asset purchases.
FCF margin
23.6%
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 |
|---|---|---|---|---|---|
| 2024-01-27 | $1.0B | $266.1M | $16.6M | $249.5M | 24.0% |
| 2024-04-27 | $910.8M | $58.5M | $16.9M | $41.6M | 4.6% |
| 2024-07-27 | $942.3M | -$159.4M | $19.6M | -$179.0M | -19.0% |
| 2024-11-02 | $1.1B | $349.4M | $83.5M | $265.8M | 23.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 717.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$609.9M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow generation
Operating cash flow improved significantly from the prior quarter's negative level and exceeded the year-ago amount, despite revenue being similar.
This drove free cash flow to a level higher than both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow relative to revenue increased substantially, leading to a free cash flow margin that was higher than both the prior quarter and the same quarter last year.
Compared to the prior quarter, revenue was higher and operating cash flow shifted from negative to positive, resulting in a much higher free cash flow. Versus the same quarter one year earlier, revenue was similar but operating cash flow and free cash flow were both higher.
Capital expenditure was higher than in both comparison periods, making it a metric to monitor.