Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply from the prior quarter, with free cash flow turning positive and margin rising. Compared to the same quarter last year, free cash flow and margin were lower despite higher revenue.
- Revenue was higher than both prior periods. Operating cash flow increased significantly from the prior quarter but decreased from a year ago. Capital expenditure remained stable. Consequently, free cash flow and its margin improved from the prior quarter but weakened versus the prior year.
- Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and margin were lower.
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
$298.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$443.1M
Cash generated by operations before capital spending.
CapEx
$145.1M
Capital spending and related asset purchases.
FCF margin
12.6%
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 |
|---|---|---|---|---|---|
| 2023-10-29 | $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% |
| 2024-07-28 | $2.4B | $443.1M | $145.1M | $298.1M | 12.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | 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.
Operating Cash Flow Recovery
The sharp increase in operating cash flow from the prior quarter was the primary driver of the positive free cash flow. The filing contains standard risk factors, management discussion, and liquidity disclosures, but does not attribute the change to any specific factors.
Free cash flow turned from negative to positive, and the margin improved significantly from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both prior periods. Operating cash flow increased significantly from the prior quarter but decreased from a year ago. Capital expenditure remained stable. Consequently, free cash flow and its margin improved from the prior quarter but weakened versus the prior year.
Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and margin were lower.
Monitor the trend in free cash flow margin, as it declined from the prior year despite higher revenue.