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 and higher than a year ago. Operating cash flow and free cash flow improved sequentially and year over year, leading to a stronger free cash flow margin.
- Operating cash flow rose while capital expenditure also increased from the prior quarter, yet free cash flow still grew. The free cash flow margin improved from the previous quarter and from the same quarter last year, reflecting a higher conversion of revenue into free cash flow.
- Compared to the prior quarter, operating cash flow was higher and capital expenditure increased, resulting in a moderately higher free cash flow. Versus the same quarter last year, operating cash flow was substantially higher, capital expenditure was slightly lower, and free cash flow improved markedly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$288.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$128.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$268.1M
Cash generated by operations before capital spending.
CapEx
$140.0M
Capital spending and related asset purchases.
FCF margin
12.6%
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 |
|---|---|---|---|---|---|
| 2024-01-31 | $931.6M | $122.7M | $118.1M | $4.6M | 0.5% |
| 2024-04-30 | $942.6M | $111.0M | $74.1M | $36.9M | 3.9% |
| 2024-07-31 | $1.0B | $207.5M | $89.0M | $118.5M | 11.8% |
| 2024-10-31 | $1.0B | $268.1M | $140.0M | $128.1M | 12.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.5B | 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 Growth
Operating cash flow increased from the prior quarter and from the same quarter last year, providing the primary lift to free cash flow despite a higher capital expenditure than the prior quarter.
This higher operating cash flow drove the improvement in free cash flow and 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 rose while capital expenditure also increased from the prior quarter, yet free cash flow still grew. The free cash flow margin improved from the previous quarter and from the same quarter last year, reflecting a higher conversion of revenue into free cash flow.
Compared to the prior quarter, operating cash flow was higher and capital expenditure increased, resulting in a moderately higher free cash flow. Versus the same quarter last year, operating cash flow was substantially higher, capital expenditure was slightly lower, and free cash flow improved markedly.
Capital expenditure rose from the prior quarter; monitor whether this trend persists and its effect on free cash flow.