Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to the prior quarter and the same quarter last year. The free cash flow margin strengthened sequentially but weakened slightly from the year-ago period.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased relative to both comparison periods, yet free cash flow still rose, resulting in a free cash flow margin that improved sequentially but declined year-over-year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was slightly higher, while free cash flow margin was lower.
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
$461.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$536.3M
Cash generated by operations before capital spending.
CapEx
$75.0M
Capital spending and related asset purchases.
FCF margin
30.4%
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 |
|---|---|---|---|---|---|
| 2024-02-03 | $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% |
| 2024-11-02 | $1.5B | $536.3M | $75.0M | $461.3M | 30.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -68.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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.
Operating Cash Flow Growth
Operating cash flow rose substantially from the prior quarter and was slightly higher than the year-ago quarter, providing the primary support for the increase in free cash flow.
Higher operating cash flow drove free cash flow higher despite increased capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased relative to both comparison periods, yet free cash flow still rose, resulting in a free cash flow margin that improved sequentially but declined year-over-year.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was slightly higher, while free cash flow margin was lower.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased in both comparisons and may affect future free cash flow conversion.