Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior year and higher than the preceding quarter. Free cash flow improved significantly compared to the same quarter last year and was higher than the previous quarter.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin improved compared to both the prior quarter and the same quarter last year.
- Compared to the preceding quarter, revenue was higher while operating cash flow was lower, but lower capital expenditure led to higher free cash flow. Versus the same quarter one year earlier, revenue was stable, operating cash flow was substantially higher, capital expenditure was lower, and free cash flow was markedly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$258.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$306.4M
Cash generated by operations before capital spending.
CapEx
$48.2M
Capital spending and related asset purchases.
FCF margin
20.3%
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 |
|---|---|---|---|---|---|
| 2023-10-28 | $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% |
| 2024-08-03 | $1.3B | $306.4M | $48.2M | $258.2M | 20.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -133.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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.
Lower Capital Expenditure
Capital expenditure was lower than both the prior quarter and the same quarter last year, which directly supported higher free cash flow despite a slight decline in operating cash flow from the prior quarter.
The reduction in capital expenditure was the strongest observable driver of the improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin improved compared to both the prior quarter and the same quarter last year.
Compared to the preceding quarter, revenue was higher while operating cash flow was lower, but lower capital expenditure led to higher free cash flow. Versus the same quarter one year earlier, revenue was stable, operating cash flow was substantially higher, capital expenditure was lower, and free cash flow was markedly higher.
Monitor the trend in operating cash flow, which decreased from the prior quarter despite higher revenue.