Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year, driven by higher revenue and operating cash flow. However, free cash flow and margin weakened relative to the immediately preceding quarter.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow followed a similar pattern, while capital expenditure remained relatively stable, resulting in free cash flow that was lower than the prior quarter but higher than the year-ago quarter. The free cash flow margin weakened sequentially but improved year-over-year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Compared to the same quarter one year earlier, all metrics increased, with free cash flow margin showing improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$333.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$513.4M
Cash generated by operations before capital spending.
CapEx
$180.4M
Capital spending and related asset purchases.
FCF margin
6.6%
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 |
|---|---|---|---|---|---|
| 2024-02-03 | $6.0B | $948.8M | $222.4M | $726.4M | 12.1% |
| 2024-05-04 | $4.9B | $368.9M | $136.2M | $232.7M | 4.8% |
| 2024-08-03 | $5.3B | $592.1M | $197.5M | $394.6M | 7.5% |
| 2024-11-02 | $5.1B | $513.4M | $180.4M | $333.0M | 6.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 68.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year free cash flow growth
The strongest observable driver was the year-over-year increase in operating cash flow, which rose alongside revenue. This supported a higher free cash flow compared to the same quarter last year.
Free cash flow margin improved year-over-year, reflecting stronger cash conversion relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow followed a similar pattern, while capital expenditure remained relatively stable, resulting in free cash flow that was lower than the prior quarter but higher than the year-ago quarter. The free cash flow margin weakened sequentially but improved year-over-year.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Compared to the same quarter one year earlier, all metrics increased, with free cash flow margin showing improvement.
Monitor the trend in capital expenditure relative to operating cash flow, as it remained stable despite changes in revenue and cash generation.