Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened sharply from the prior quarter, driven by a decline in operating cash flow despite higher revenue. Compared to the same quarter last year, free cash flow was lower, though the margin improved slightly.
- Revenue increased from the prior quarter, but operating cash flow fell, resulting in a lower free cash flow and a narrower free cash flow margin. Capital expenditure was slightly higher than both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were significantly lower, while revenue was higher. Versus the same quarter one year earlier, free cash flow was lower but the margin was higher, as revenue was slightly higher and operating cash flow 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
$60.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$105.0M
Cash generated by operations before capital spending.
CapEx
$45.0M
Capital spending and related asset purchases.
FCF margin
3.6%
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 |
|---|---|---|---|---|---|
| 2024-01-26 | $1.6B | $484.0M | $36.0M | $448.0M | 27.9% |
| 2024-04-26 | $1.7B | $613.0M | $46.0M | $567.0M | 34.0% |
| 2024-07-26 | $1.5B | $341.0M | $41.0M | $300.0M | 19.5% |
| 2024-10-25 | $1.7B | $105.0M | $45.0M | $60.0M | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 20.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$515.0M | 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 Decline
Operating cash flow decreased from both the prior quarter and the year-ago quarter, despite revenue being higher than both periods. This was the strongest observable driver of the lower free cash flow.
The decline in operating cash flow directly reduced free cash flow and margin, outweighing the positive effect of higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, but operating cash flow fell, resulting in a lower free cash flow and a narrower free cash flow margin. Capital expenditure was slightly higher than both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were significantly lower, while revenue was higher. Versus the same quarter one year earlier, free cash flow was lower but the margin was higher, as revenue was slightly higher and operating cash flow was lower.
Monitor the trend in operating cash flow relative to revenue, as it declined despite higher revenue this quarter.