Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased relative to the prior quarter and the year-ago period. Operating cash flow and free cash flow turned positive compared to the year-ago quarter, while free cash flow margin improved significantly.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was positive, reflecting efficient cash generation from revenue.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Versus the same quarter one year earlier, all metrics improved substantially, with operating cash flow and free cash flow moving from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$329.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$362.0M
Cash generated by operations before capital spending.
CapEx
$33.0M
Capital spending and related asset purchases.
FCF margin
10.0%
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 |
|---|---|---|---|---|---|
| 2024-01-31 | $3.4B | $613.0M | $63.0M | $550.0M | 16.2% |
| 2024-04-30 | $6.7B | $4.0B | $61.0M | $3.9B | 57.7% |
| 2024-07-31 | $3.2B | $417.0M | $17.0M | $400.0M | 12.6% |
| 2024-10-31 | $3.3B | $362.0M | $33.0M | $329.0M | 10.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 167.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free Cash Flow Recovery
Free cash flow turned positive from a negative position a year ago, driven by a significant improvement in operating cash flow.
The company generated positive free cash flow this quarter, reversing the prior year's negative outcome.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was positive, reflecting efficient cash generation from revenue.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Versus the same quarter one year earlier, all metrics improved substantially, with operating cash flow and free cash flow moving from negative to positive.
Monitor the trend in capital expenditure, which increased from the prior quarter but decreased from a year ago.