Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's cash conversion weakened significantly from the prior quarter and the year-ago quarter, as revenue remained stable while operating cash flow declined. Free cash flow margin contracted sharply, reflecting a higher rate of capital spending relative to operating cash generation.
- Revenue held steady, but operating cash flow fell compared to both the prior quarter and the same quarter last year, resulting in lower free cash flow. The substantially lower free cash flow margin indicates that capital expenditures consumed a larger portion of operating cash flow.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while capital expenditure was higher. Versus the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$122.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$300.7M
Cash generated by operations before capital spending.
CapEx
$178.5M
Capital spending and related asset purchases.
FCF margin
5.1%
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 |
|---|---|---|---|---|---|
| 2024-01-28 | $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% |
| 2024-10-27 | $2.4B | $300.7M | $178.5M | $122.2M | 5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 34.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.4% | 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 Increase
Capital expenditure was higher in the current quarter compared to both the prior quarter and the year-ago quarter. This increased spending, combined with lower operating cash flow, was the strongest observable driver of the lower free cash flow.
The change in capital expenditure had a direct and material negative impact on free cash flow and its margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue held steady, but operating cash flow fell compared to both the prior quarter and the same quarter last year, resulting in lower free cash flow. The substantially lower free cash flow margin indicates that capital expenditures consumed a larger portion of operating cash flow.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while capital expenditure was higher. Versus the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, and capital expenditure was higher.
Monitor the level of capital expenditure relative to operating cash flow, as the increased capital spending has been a primary factor in the reduced free cash flow margin.