Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter but lower than the same quarter last year. Free cash flow turned positive from a negative position in the prior quarter and improved versus the year-ago quarter.
- Operating cash flow increased significantly from the prior quarter, while capital expenditure decreased, resulting in a positive free cash flow margin. The margin improved compared to both the prior quarter and the same quarter last year.
- Compared to the prior quarter, revenue was stable, operating cash flow was higher, capital expenditure was lower, and free cash flow improved from negative to positive. Compared to the same quarter last year, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$409.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$515.0M
Cash generated by operations before capital spending.
CapEx
$106.0M
Capital spending and related asset purchases.
FCF margin
6.0%
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 |
|---|---|---|---|---|---|
| 2023-08-31 | $8.5B | $686.0M | $170.0M | $516.0M | 6.1% |
| 2023-11-30 | $8.4B | $448.0M | $288.0M | $160.0M | 1.9% |
| 2024-02-29 | $6.8B | $218.0M | $266.0M | -$48.0M | -0.7% |
| 2024-05-31 | $6.8B | $515.0M | $106.0M | $409.0M | 6.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 317.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$422.0M | 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 Strength
Operating cash flow was higher than both the prior quarter and the same quarter last year, despite revenue being lower year over year. This was the strongest observable driver of the positive free cash flow.
Higher operating cash flow directly enabled the company to generate positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased significantly from the prior quarter, while capital expenditure decreased, resulting in a positive free cash flow margin. The margin improved compared to both the prior quarter and the same quarter last year.
Compared to the prior quarter, revenue was stable, operating cash flow was higher, capital expenditure was lower, and free cash flow improved from negative to positive. Compared to the same quarter last year, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher.
Monitor the level of capital expenditure, as it decreased from the prior quarter and year-ago quarter, which contributed to the improvement in free cash flow.