Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated free cash flow higher than both the prior quarter and the same quarter one year earlier, driven by operating cash flow that improved sequentially and year-over-year. The free cash flow margin strengthened compared with both prior periods, reflecting a higher operating cash flow relative to revenue.
- Revenue was higher than the preceding quarter and the year-ago quarter. Operating cash flow rose markedly from the prior quarter and was also above the year-ago level. Capital expenditure increased modestly versus both prior periods. Free cash flow and free cash flow margin improved sequentially and year-over-year.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow were substantially higher, and the free cash flow margin more than recovered from a lower level. Versus the same quarter one year earlier, all metrics were higher and margins strengthened modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$204.0M
Capital spending and related asset purchases.
FCF margin
18.8%
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 | $9.3B | $3.4B | $147.0M | $3.3B | 35.1% |
| 2024-04-30 | $9.1B | $6.2B | $163.0M | $6.1B | 66.6% |
| 2024-07-31 | $9.3B | $892.0M | $137.0M | $755.0M | 8.1% |
| 2024-10-31 | $9.4B | $2.0B | $204.0M | $1.8B | 18.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$435.0M | 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 Surge
Operating cash flow was the strongest observable driver, increasing sharply from the prior quarter and moving higher than the year-ago period. This gain was the primary factor behind the improvement in free cash flow and margin.
The improvement in operating cash flow directly lifted free cash flow and the free cash flow margin to higher levels relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the preceding quarter and the year-ago quarter. Operating cash flow rose markedly from the prior quarter and was also above the year-ago level. Capital expenditure increased modestly versus both prior periods. Free cash flow and free cash flow margin improved sequentially and year-over-year.
Compared with the immediately preceding quarter, operating cash flow and free cash flow were substantially higher, and the free cash flow margin more than recovered from a lower level. Versus the same quarter one year earlier, all metrics were higher and margins strengthened modestly.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in subsequent quarters.