Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower sequentially but higher year-over-year. Free cash flow and free cash flow margin improved significantly compared with both the immediately preceding quarter and the same quarter one year earlier.
- Operating cash flow exceeded revenue by a wide margin, driving a free cash flow margin above sixty percent. Capital expenditure was minimal relative to operating cash flow, leading to a high conversion of operating cash flow into free cash flow.
- Compared with the immediately preceding quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Compared with the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.2B
Cash generated by operations before capital spending.
CapEx
$163.0M
Capital spending and related asset purchases.
FCF margin
66.6%
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 |
|---|---|---|---|---|---|
| 2023-07-31 | $8.6B | $808.0M | $180.0M | $628.0M | 7.3% |
| 2023-10-31 | $8.7B | $1.5B | $166.0M | $1.4B | 15.7% |
| 2024-01-31 | $9.3B | $3.4B | $147.0M | $3.3B | 35.1% |
| 2024-04-30 | $9.1B | $6.2B | $163.0M | $6.1B | 66.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 396.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $529.0M | 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 Strength
The most significant observable driver was operating cash flow, which rose sharply from both the prior quarter and the year-ago period, despite a sequential decline in revenue. This supported a free cash flow margin that was substantially higher than both comparison periods.
The higher operating cash flow was the primary factor behind the improved free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue by a wide margin, driving a free cash flow margin above sixty percent. Capital expenditure was minimal relative to operating cash flow, leading to a high conversion of operating cash flow into free cash flow.
Compared with the immediately preceding quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Compared with the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower.
Monitor the trajectory of operating cash flow relative to revenue, as the current quarter's high cash conversion may not persist.