Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved sharply from the prior quarter but declined relative to the same quarter last year. Revenue was stable across all three periods, making operating cash flow the primary differentiator.
- Operating cash flow, net of moderate capital expenditure, generated a free cash flow margin that was higher than the prior quarter but lower than the year-ago quarter. The conversion pattern reflects the variation in operating cash flow rather than capital spending, which remained relatively stable.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, and the margin strengthened. Compared to the same quarter one year earlier, all metrics were lower, with operating cash flow showing the largest relative decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$510.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$546.1M
Cash generated by operations before capital spending.
CapEx
$35.6M
Capital spending and related asset purchases.
FCF margin
39.9%
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 |
|---|---|---|---|---|---|
| 2023-11-30 | $1.2B | $311.3M | $40.7M | $270.6M | 22.1% |
| 2024-02-29 | $1.4B | $671.7M | $40.7M | $631.0M | 45.2% |
| 2024-05-31 | $1.3B | $221.7M | $41.3M | $180.4M | 14.4% |
| 2024-08-31 | $1.3B | $546.1M | $35.6M | $510.5M | 39.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | 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.
Operating Cash Flow Variability
Operating cash flow was the strongest observable driver of free cash flow, rising from the prior quarter but falling from the year-ago quarter. Capital expenditure changed only modestly over the same periods.
The swing in operating cash flow directly determined the direction of free cash flow and margin compared to both reference quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow, net of moderate capital expenditure, generated a free cash flow margin that was higher than the prior quarter but lower than the year-ago quarter. The conversion pattern reflects the variation in operating cash flow rather than capital spending, which remained relatively stable.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, and the margin strengthened. Compared to the same quarter one year earlier, all metrics were lower, with operating cash flow showing the largest relative decline.
Monitor whether operating cash flow can sustain its recent improvement or reverts toward the lower levels seen in the prior sequential quarter.