Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin expanded as revenue grew while capital expenditure remained stable.
- Revenue increased from the prior quarter and the year-ago quarter, while operating cash flow rose at a faster pace, resulting in higher free cash flow and an improved free cash flow margin. Capital expenditure was slightly higher than the prior quarter but comparable to the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin both improved. Versus the same quarter one year earlier, free cash flow and free cash flow margin were substantially higher, with operating cash flow showing the largest relative increase.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$567.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$613.0M
Cash generated by operations before capital spending.
CapEx
$46.0M
Capital spending and related asset purchases.
FCF margin
34.0%
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 |
|---|---|---|---|---|---|
| 2023-07-28 | $1.4B | $453.0M | $35.0M | $418.0M | 29.2% |
| 2023-10-27 | $1.6B | $135.0M | $38.0M | $97.0M | 6.2% |
| 2024-01-26 | $1.6B | $484.0M | $36.0M | $448.0M | 27.9% |
| 2024-04-26 | $1.7B | $613.0M | $46.0M | $567.0M | 34.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 194.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$489.0M | 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 increased from both the prior quarter and the year-ago quarter, contributing directly to the rise in free cash flow. This was the strongest observable driver of the quarter's performance.
Higher operating cash flow was the primary factor behind the improvement in free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter and the year-ago quarter, while operating cash flow rose at a faster pace, resulting in higher free cash flow and an improved free cash flow margin. Capital expenditure was slightly higher than the prior quarter but comparable to the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin both improved. Versus the same quarter one year earlier, free cash flow and free cash flow margin were substantially higher, with operating cash flow showing the largest relative increase.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.