Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the year-ago quarter. Free cash flow and free cash flow margin also improved, reflecting a stronger cash conversion performance.
- Free cash flow represents operating cash flow less capital expenditure. Operating cash flow was higher than the year-ago quarter but slightly lower than the prior quarter, while capital expenditure was lower than both, resulting in free cash flow that was higher than both comparison periods.
- Compared to the prior quarter, revenue grew while operating cash flow declined, yet free cash flow improved due to lower capital expenditure. Compared to the same quarter last year, all metrics improved: revenue, operating cash flow, and free cash flow were higher, and free cash flow margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$554.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$958.0M
Cash generated by operations before capital spending.
CapEx
$404.0M
Capital spending and related asset purchases.
FCF margin
6.6%
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 |
|---|---|---|---|---|---|
| 2024-01-26 | $8.1B | $2.5B | $346.0M | $2.1B | 26.3% |
| 2024-04-26 | $8.6B | $2.8B | $426.0M | $2.4B | 27.4% |
| 2024-07-26 | $7.9B | $986.0M | $520.0M | $466.0M | 5.9% |
| 2024-10-25 | $8.4B | $958.0M | $404.0M | $554.0M | 6.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 43.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | 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.
Improved Free Cash Flow Generation
Free cash flow rose compared to both the prior quarter and the year-ago period, supported by higher revenue and a reduction in capital expenditure. The free cash flow margin improved from both the prior quarter and the year-ago quarter.
The improvement in free cash flow margin strengthened the company's cash conversion profile for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow represents operating cash flow less capital expenditure. Operating cash flow was higher than the year-ago quarter but slightly lower than the prior quarter, while capital expenditure was lower than both, resulting in free cash flow that was higher than both comparison periods.
Compared to the prior quarter, revenue grew while operating cash flow declined, yet free cash flow improved due to lower capital expenditure. Compared to the same quarter last year, all metrics improved: revenue, operating cash flow, and free cash flow were higher, and free cash flow margin strengthened.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite revenue growth.