Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year, driven by higher operating cash flow and lower capital expenditure. However, free cash flow and margin weakened from the immediately preceding quarter due to lower revenue and operating cash flow.
- Revenue decreased from the prior quarter, while operating cash flow declined more sharply, resulting in a lower free cash flow margin. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter, partially offsetting the cash conversion impact.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all weakened. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$233.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$324.5M
Cash generated by operations before capital spending.
CapEx
$91.5M
Capital spending and related asset purchases.
FCF margin
20.1%
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 |
|---|---|---|---|---|---|
| 2023-07-29 | $1.3B | $112.5M | $111.1M | $1.4M | 0.1% |
| 2023-10-28 | $1.4B | $503.0M | $54.4M | $448.6M | 31.6% |
| 2024-02-03 | $1.4B | $546.6M | $71.0M | $475.6M | 33.3% |
| 2024-05-04 | $1.2B | $324.5M | $91.5M | $233.0M | 20.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -108.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.3B | 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 Improvement Year-over-Year
Operating cash flow was higher than the same quarter last year, despite lower revenue, which supported the increase in free cash flow. This was the strongest observable driver of the quarter's cash generation.
Free cash flow margin expanded compared to the year-ago quarter, reflecting improved cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased from the prior quarter, while operating cash flow declined more sharply, resulting in a lower free cash flow margin. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter, partially offsetting the cash conversion impact.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all weakened. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and margin improved.
Monitor the trend in operating cash flow relative to revenue, as it declined more than revenue from the prior quarter.