Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated positive free cash flow in the quarter, with a margin that improved compared to the same period last year but weakened from the prior quarter. Revenue was lower year over year but higher sequentially.
- Operating cash flow improved relative to the prior year but declined significantly from the previous quarter, driving a similar pattern in free cash flow. Capital expenditure was lower year over year and slightly higher sequentially.
- Compared to the prior quarter, free cash flow and its margin weakened as operating cash flow fell despite higher revenue. Versus the same quarter last year, free cash flow and margin improved while revenue was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$47.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$20.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$24.6M
Cash generated by operations before capital spending.
CapEx
$4.6M
Capital spending and related asset purchases.
FCF margin
2.3%
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 |
|---|---|---|---|---|---|
| 2024-02-03 | $1.8B | -$11.0M | $7.7M | -$18.7M | -1.0% |
| 2024-05-04 | $881.8M | -$109.8M | $4.9M | -$114.7M | -13.0% |
| 2024-08-03 | $798.3M | $68.6M | $3.1M | $65.5M | 8.2% |
| 2024-11-02 | $860.3M | $24.6M | $4.6M | $20.0M | 2.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $4.6B | 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 volatility
Operating cash flow declined sharply from the previous quarter, reversing the improvement seen from the prior year. This sequential drop was the primary factor behind the weaker free cash flow margin.
The volatility in cash generation may affect the consistency of free cash flow in future periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved relative to the prior year but declined significantly from the previous quarter, driving a similar pattern in free cash flow. Capital expenditure was lower year over year and slightly higher sequentially.
Compared to the prior quarter, free cash flow and its margin weakened as operating cash flow fell despite higher revenue. Versus the same quarter last year, free cash flow and margin improved while revenue was lower.
Monitor the trajectory of operating cash flow, as it showed a significant sequential decline after year-over-year improvement.