Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter but declined from the same quarter last year. Operating cash flow rose sharply in both comparisons, driving free cash flow from negative to positive and yielding a positive free cash flow margin.
- Operating cash flow was higher relative to revenue in the current quarter compared with both the prior quarter and the year-ago period, and capital expenditure decreased, resulting in a positive free cash flow margin.
- Revenue was higher than the prior quarter but lower than the same quarter last year. Operating cash flow improved in both comparisons, while capital expenditure was slightly lower than the prior quarter and substantially lower than the year-ago period. Free cash flow turned from negative to positive, and the free cash flow margin shifted from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$444.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$785.6M
Cash generated by operations before capital spending.
CapEx
$341.4M
Capital spending and related asset purchases.
FCF margin
10.2%
The share of revenue converted into free cash flow.
TTM FCF yield
8.0%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $785.6M | Cash generated by operations before capital spending. |
| Capital expenditures | $341.4M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $444.2M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-04-30 | $6.9B | $538.5M | $253.4M | $285.1M | 4.1% |
| 2022-07-30 | $6.8B | -$17.9M | $276.2M | -$294.1M | -4.3% |
| 2022-10-29 | $6.9B | $213.5M | $391.2M | -$177.7M | -2.6% |
| 2023-01-28 | -$5.2B | $880.7M | $281.8M | $598.9M | -11.5% |
| 2023-04-29 | $3.9B | $752.0M | $350.4M | $401.6M | 10.2% |
| 2023-07-29 | $10.7B | $171.8M | $425.4M | -$253.6M | -2.4% |
| 2023-10-28 | $7.3B | $505.8M | $541.4M | -$35.6M | -0.5% |
| 2024-02-03 | $5.0B | $1.3B | $123.4M | $1.1B | 22.8% |
| 2024-05-04 | $4.2B | $695.7M | $316.5M | $379.2M | 9.1% |
| 2024-08-03 | $4.1B | $306.9M | $347.8M | -$40.9M | -1.0% |
| 2024-11-02 | $4.3B | $785.6M | $341.4M | $444.2M | 10.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 190.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | 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 Improvement
Operating cash flow was significantly higher than both the prior quarter and the year-ago period, even as revenue declined year-over-year. This improvement, combined with lower capital expenditure, was the primary factor behind the shift to positive free cash flow.
The free cash flow margin turned positive after being negative in both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher relative to revenue in the current quarter compared with both the prior quarter and the year-ago period, and capital expenditure decreased, resulting in a positive free cash flow margin.
Revenue was higher than the prior quarter but lower than the same quarter last year. Operating cash flow improved in both comparisons, while capital expenditure was slightly lower than the prior quarter and substantially lower than the year-ago period. Free cash flow turned from negative to positive, and the free cash flow margin shifted from negative to positive.
Monitor whether operating cash flow can sustain its elevated level relative to the current revenue base.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $23.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 8.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 14.0x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |