Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and higher year-over-year. Free cash flow margin weakened sequentially but improved substantially compared with the same quarter last year.
- Revenue remained unchanged from the preceding quarter while operating cash flow declined; combined with a lower capital expenditure, free cash flow contracted. Compared with the same quarter a year earlier, revenue increased and operating cash flow improved more than the rise in capital expenditure, leading to higher free cash flow and an improved free cash flow margin.
- Free cash flow and margin were lower than the immediate prior quarter, driven by a weaker operating cash flow conversion on stable revenue. Versus the year-ago quarter, free cash flow and margin were higher, supported by stronger operating cash flow on higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$367.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$460.4M
Cash generated by operations before capital spending.
CapEx
$92.9M
Capital spending and related asset purchases.
FCF margin
14.7%
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 |
|---|---|---|---|---|---|
| 2023-11-30 | $2.4B | $392.7M | $93.8M | $298.9M | 12.6% |
| 2024-02-29 | $2.4B | $657.1M | $107.0M | $550.1M | 22.9% |
| 2024-05-31 | $2.5B | $681.8M | $101.9M | $579.8M | 23.5% |
| 2024-08-31 | $2.5B | $460.4M | $92.9M | $367.4M | 14.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 81.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year operating cash flow strength
Operating cash flow was notably higher compared with the same quarter one year earlier, while capital expenditure was slightly lower. This combination produced a higher free cash flow and an expanded free cash flow margin relative to the year-ago period.
The year-over-year improvement in operating cash flow was the strongest observable driver of the increase in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained unchanged from the preceding quarter while operating cash flow declined; combined with a lower capital expenditure, free cash flow contracted. Compared with the same quarter a year earlier, revenue increased and operating cash flow improved more than the rise in capital expenditure, leading to higher free cash flow and an improved free cash flow margin.
Free cash flow and margin were lower than the immediate prior quarter, driven by a weaker operating cash flow conversion on stable revenue. Versus the year-ago quarter, free cash flow and margin were higher, supported by stronger operating cash flow on higher revenue.
Monitor the sequential change in operating cash flow, as it was the primary factor behind the decline in free cash flow from the previous quarter.