Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to both the prior quarter and the same quarter a year earlier. Free cash flow turned positive from a year ago but declined sharply from the prior quarter, with a very low margin.
- Operating cash flow decreased from the prior quarter despite higher revenue, while capital expenditure increased, causing free cash flow to drop significantly. The free cash flow margin weakened from the prior quarter's level but improved from a negative margin a year ago.
- Compared to the prior quarter, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were both lower. Versus the same quarter a year earlier, all metrics were higher, and free cash flow turned from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$554.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$38.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.2B
Cash generated by operations before capital spending.
CapEx
$3.2B
Capital spending and related asset purchases.
FCF margin
0.4%
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 |
|---|---|---|---|---|---|
| 2024-02-29 | $5.8B | $1.2B | $1.4B | -$165.0M | -2.8% |
| 2024-05-30 | $6.8B | $2.5B | $2.1B | $396.0M | 5.8% |
| 2024-08-29 | $7.8B | $3.4B | $3.1B | $285.0M | 3.7% |
| 2024-11-28 | $8.7B | $3.2B | $3.2B | $38.0M | 0.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 2.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 36.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth
Revenue increased in the current quarter versus both the prior quarter and the year-ago period. However, operating cash flow did not keep pace, and capital expenditure rose, limiting free cash flow generation.
Free cash flow margin remains near zero, signaling that cash conversion is not improving proportionally with revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased from the prior quarter despite higher revenue, while capital expenditure increased, causing free cash flow to drop significantly. The free cash flow margin weakened from the prior quarter's level but improved from a negative margin a year ago.
Compared to the prior quarter, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were both lower. Versus the same quarter a year earlier, all metrics were higher, and free cash flow turned from negative to positive.
The gap between operating cash flow and capital expenditure, as free cash flow is very thin despite revenue growth.