Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared with the same quarter one year earlier but higher than the prior quarter. Operating cash flow declined relative to the year-ago quarter, while lower capital expenditure supported an improvement in free cash flow versus the preceding quarter.
- Revenue was slightly higher than the prior quarter, while operating cash flow was marginally lower. Capital expenditure decreased, enabling free cash flow to increase.
- Compared with the immediately preceding quarter, free cash flow margin improved. Compared with the same quarter one year earlier, free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$774.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$102.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$161.7M
Cash generated by operations before capital spending.
CapEx
$59.0M
Capital spending and related asset purchases.
FCF margin
6.1%
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 |
|---|---|---|---|---|---|
| 2023-11-30 | $1.8B | $577.2M | $76.7M | $500.5M | 28.6% |
| 2024-02-29 | $1.6B | $138.4M | $62.0M | $76.4M | 4.8% |
| 2024-05-31 | $1.6B | $163.1M | $68.3M | $94.8M | 5.8% |
| 2024-08-31 | $1.7B | $161.7M | $59.0M | $102.7M | 6.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 46.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.2B | 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 decreased compared with both the prior quarter and the year-ago quarter, contributing to a higher free cash flow despite lower operating cash flow.
The lower capital expenditure allowed free cash flow to improve sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter, while operating cash flow was marginally lower. Capital expenditure decreased, enabling free cash flow to increase.
Compared with the immediately preceding quarter, free cash flow margin improved. Compared with the same quarter one year earlier, free cash flow margin weakened.
Monitor operating cash flow trends, as they declined materially from the year-ago level.