Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened sequentially despite revenue stability, while both improved compared to the same quarter last year. The quarter's cash conversion was primarily driven by operating cash flow, which declined from the prior period.
- Revenue was stable, while operating cash flow converted into free cash flow after capital expenditure, resulting in a free cash flow margin that was lower than the preceding quarter but higher than the year-ago quarter.
- Compared to the immediate prior quarter, free cash flow and margin were lower, while revenue was unchanged. Versus the same quarter one year ago, revenue, operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$491.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$528.9M
Cash generated by operations before capital spending.
CapEx
$37.4M
Capital spending and related asset purchases.
FCF margin
24.8%
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 |
|---|---|---|---|---|---|
| 2023-07-31 | $2.0B | $414.1M | $37.2M | $376.9M | 19.3% |
| 2023-10-31 | $1.9B | $1.5B | $36.8M | $1.5B | 79.3% |
| 2024-01-31 | $2.0B | $690.0M | $35.2M | $654.8M | 33.2% |
| 2024-04-30 | $2.0B | $528.9M | $37.4M | $491.5M | 24.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 176.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential decline in free cash flow margin
The free cash flow margin weakened from the prior quarter, even though the year-ago comparison showed improvement. This shift occurred with stable revenue but lower operating cash flow.
If the margin continues to weaken, it may signal reduced efficiency in converting revenue into free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, while operating cash flow converted into free cash flow after capital expenditure, resulting in a free cash flow margin that was lower than the preceding quarter but higher than the year-ago quarter.
Compared to the immediate prior quarter, free cash flow and margin were lower, while revenue was unchanged. Versus the same quarter one year ago, revenue, operating cash flow, free cash flow, and margin were all higher.
Monitor the trend in operating cash flow, as it declined significantly from the prior quarter and is the primary contributor to free cash flow.