Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased compared to the same quarter last year, driven by a substantial reduction in capital expenditure even as revenue and operating cash flow declined. Sequentially, free cash flow fell sharply as operating cash flow weakened despite lower capital spending.
- Revenue was unchanged from the prior quarter but lower than a year ago. Operating cash flow decreased both sequentially and year-over-year, while capital expenditure was lower in both comparisons. The resulting free cash flow margin improved versus the prior year but weakened sequentially.
- Compared to the immediately preceding quarter, revenue was stable, operating cash flow and free cash flow were lower, and capital expenditure was reduced. Versus the same quarter one year earlier, revenue was lower, operating cash flow was lower, but free cash flow was higher due to a larger reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$987.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$215.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$312.0M
Cash generated by operations before capital spending.
CapEx
$97.0M
Capital spending and related asset purchases.
FCF margin
3.1%
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 |
|---|---|---|---|---|---|
| 2024-02-29 | $6.8B | $218.0M | $266.0M | -$48.0M | -0.7% |
| 2024-05-31 | $6.8B | $515.0M | $106.0M | $409.0M | 6.0% |
| 2024-08-31 | $7.0B | $535.0M | $124.0M | $411.0M | 5.9% |
| 2024-11-30 | $7.0B | $312.0M | $97.0M | $215.0M | 3.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 215.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$824.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Reduction
Capital expenditure was significantly lower than both the prior quarter and the same quarter last year, dropping from higher levels. This reduction was the strongest observable factor allowing free cash flow to rise year-over-year even as revenue and operating cash flow fell.
The lower capital expenditure was the primary driver of the year-over-year improvement in free cash flow.
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 but lower than a year ago. Operating cash flow decreased both sequentially and year-over-year, while capital expenditure was lower in both comparisons. The resulting free cash flow margin improved versus the prior year but weakened sequentially.
Compared to the immediately preceding quarter, revenue was stable, operating cash flow and free cash flow were lower, and capital expenditure was reduced. Versus the same quarter one year earlier, revenue was lower, operating cash flow was lower, but free cash flow was higher due to a larger reduction in capital expenditure.
Monitor the trajectory of operating cash flow, which declined both sequentially and year-over-year despite stable revenue.