Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to the same quarter last year, supported by a higher operating cash flow and a lower capital expenditure. Sequentially, free cash flow decreased from the prior quarter as operating cash flow declined, despite a reduction in capital spending.
- Revenue was unchanged from the prior quarter and higher than the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, while capital expenditure decreased both sequentially and year over year. The resulting free cash flow margin improved from negative a year ago but weakened from the prior quarter.
- Compared to the immediately preceding quarter, free cash flow weakened because operating cash flow was lower, partially offset by lower capital expenditure. Versus the same quarter one year earlier, free cash flow improved significantly, shifting from a negative to a positive figure, driven by a higher operating cash flow and a slightly lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$321.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$663.8M
Cash generated by operations before capital spending.
CapEx
$342.0M
Capital spending and related asset purchases.
FCF margin
3.2%
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 |
|---|---|---|---|---|---|
| 2023-08-04 | $9.8B | $535.6M | $404.8M | $130.8M | 1.3% |
| 2023-11-03 | $9.7B | $715.3M | $472.6M | $242.7M | 2.5% |
| 2024-02-02 | $9.9B | $949.8M | $459.7M | $490.1M | 5.0% |
| 2024-05-03 | $9.9B | $663.8M | $342.0M | $321.8M | 3.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 improvement
Operating cash flow increased substantially from the year-ago quarter, while capital expenditure was slightly lower, resulting in a positive free cash flow compared to a negative figure a year ago. This improvement is a key factor in the current quarter's cash generation.
The stronger operating cash flow, combined with lower capital spending, provides a more solid base for liquidity, consistent with the company's assessment that cash flow from operations supports obligations and capital needs.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter and higher than the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, while capital expenditure decreased both sequentially and year over year. The resulting free cash flow margin improved from negative a year ago but weakened from the prior quarter.
Compared to the immediately preceding quarter, free cash flow weakened because operating cash flow was lower, partially offset by lower capital expenditure. Versus the same quarter one year earlier, free cash flow improved significantly, shifting from a negative to a positive figure, driven by a higher operating cash flow and a slightly lower capital expenditure.
Monitor the trend in operating cash flow, as its increase from the prior year was substantial but its sequential decline may signal variability.