Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow was negative as capital expenditure exceeded operating cash flow. Revenue was lower than the prior quarter but higher than the same quarter last year, while operating cash flow improved from a year ago but declined sharply from the prior quarter.
- Operating cash flow as a percentage of revenue was lower than the prior quarter but higher than the same quarter last year. Capital expenditure was lower than both comparison periods, yet it still outpaced operating cash flow, leading to a negative free cash flow margin.
- Compared to the prior quarter, free cash flow turned from positive to negative, driven by a significant reduction in operating cash flow and a smaller decline in capital expenditure. Versus the same quarter last year, free cash flow improved from negative to a smaller negative, as operating cash flow increased and capital expenditure decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$3.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$127.5M
Cash generated by operations before capital spending.
CapEx
$130.7M
Capital spending and related asset purchases.
FCF margin
-0.1%
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 |
|---|---|---|---|---|---|
| 2023-07-30 | $2.2B | $476.7M | $145.5M | $331.2M | 15.0% |
| 2023-10-29 | $2.2B | $389.9M | $162.9M | $227.0M | 10.3% |
| 2024-01-28 | $3.2B | $1.4B | $206.5M | $1.2B | 36.7% |
| 2024-04-28 | $2.2B | $127.5M | $130.7M | -$3.2M | -0.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 relative to operating cash flow
In the current quarter, capital expenditure was higher than operating cash flow, resulting in negative free cash flow.
If this gap persists, free cash flow may remain negative unless operating cash flow grows or capital expenditure is reduced.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was lower than the prior quarter but higher than the same quarter last year. Capital expenditure was lower than both comparison periods, yet it still outpaced operating cash flow, leading to a negative free cash flow margin.
Compared to the prior quarter, free cash flow turned from positive to negative, driven by a significant reduction in operating cash flow and a smaller decline in capital expenditure. Versus the same quarter last year, free cash flow improved from negative to a smaller negative, as operating cash flow increased and capital expenditure decreased.
Monitor the relationship between operating cash flow and capital expenditure, as capital expenditure has exceeded operating cash flow in the current quarter.