Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the year-ago quarter. Free cash flow margin increased compared to the same quarter last year but decreased from the previous quarter.
- Operating cash flow rose relative to the year-ago quarter but fell slightly from the prior quarter. Capital expenditure increased both sequentially and year-over-year, resulting in free cash flow that was higher than a year ago but lower than the previous quarter.
- Compared to the prior quarter, revenue increased while operating cash flow, free cash flow, and free cash flow margin all declined. Compared to the year-ago quarter, all metrics improved: revenue, operating cash flow, capital expenditure, free cash flow, and margin.
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
$343.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$444.7M
Cash generated by operations before capital spending.
CapEx
$101.4M
Capital spending and related asset purchases.
FCF margin
13.4%
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 |
|---|---|---|---|---|---|
| 2024-02-29 | $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% |
| 2024-11-30 | $2.6B | $444.7M | $101.4M | $343.3M | 13.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 76.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | 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.
Revenue Growth
Revenue was higher than the prior quarter and the year-ago quarter, coinciding with higher operating cash flow and free cash flow compared to the year-ago period.
The free cash flow margin improved year-over-year as revenue growth accompanied an increase in operating cash flow, despite higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to the year-ago quarter but fell slightly from the prior quarter. Capital expenditure increased both sequentially and year-over-year, resulting in free cash flow that was higher than a year ago but lower than the previous quarter.
Compared to the prior quarter, revenue increased while operating cash flow, free cash flow, and free cash flow margin all declined. Compared to the year-ago quarter, all metrics improved: revenue, operating cash flow, capital expenditure, free cash flow, and margin.
Monitor the trend in capital expenditure, which increased both sequentially and year-over-year, and its relationship to operating cash flow, as the company uses operating cash flows to fund operations, expansion, dividends, and potential share repurchases and debt payments.