Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased from the prior quarter and the year-ago quarter, driven by lower operating cash flow. The free cash flow margin weakened compared to both periods.
- Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow declined from both comparison periods, while capital expenditure was slightly lower than the prior quarter but slightly higher than a year ago. The resulting free cash flow and free cash flow margin were lower than both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, free cash flow was lower and the margin weakened, as operating cash flow decreased while revenue was stable. Versus the same quarter last year, free cash flow was lower and the margin weakened, despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$272.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$449.5M
Cash generated by operations before capital spending.
CapEx
$177.0M
Capital spending and related asset purchases.
FCF margin
5.5%
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 |
|---|---|---|---|---|---|
| 2023-01-28 | $5.2B | $1.2B | $236.2M | $980.5M | 18.8% |
| 2023-04-29 | $4.5B | $413.2M | $167.3M | $245.9M | 5.5% |
| 2023-07-29 | $4.9B | $703.1M | $196.2M | $506.9M | 10.3% |
| 2023-10-28 | $4.9B | $449.5M | $177.0M | $272.5M | 5.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 60.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.0B | 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 was lower than both the prior quarter and the year-ago quarter, while revenue was stable sequentially and higher year over year. This divergence is the strongest observable driver of the weaker free cash flow.
The decline in operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow declined from both comparison periods, while capital expenditure was slightly lower than the prior quarter but slightly higher than a year ago. The resulting free cash flow and free cash flow margin were lower than both the prior quarter and the year-ago quarter.
Compared to the prior quarter, free cash flow was lower and the margin weakened, as operating cash flow decreased while revenue was stable. Versus the same quarter last year, free cash flow was lower and the margin weakened, despite higher revenue.
Monitor the trend in operating cash flow, as it declined from both the prior quarter and the year-ago quarter while revenue was stable or higher.