Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved compared to the prior quarter and the same quarter last year, with free cash flow margin also higher. Revenue was stable relative to the year-ago quarter but slightly higher than the preceding quarter.
- Revenue was stable compared to the year-ago quarter and slightly higher than the prior quarter. Operating cash flow increased, capital expenditure decreased, and free cash flow rose, resulting in a higher free cash flow margin.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, all metrics improved: operating cash flow, free cash flow, and free cash flow margin were higher, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$542.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$562.8M
Cash generated by operations before capital spending.
CapEx
$20.7M
Capital spending and related asset purchases.
FCF margin
33.1%
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 |
|---|---|---|---|---|---|
| 2024-01-31 | $1.5B | -$87.8M | $40.4M | -$128.2M | -8.5% |
| 2024-04-30 | $1.5B | $476.6M | $38.4M | $438.2M | 30.1% |
| 2024-07-31 | $1.5B | $455.4M | $40.0M | $415.4M | 27.2% |
| 2024-10-31 | $1.6B | $562.8M | $20.7M | $542.1M | 33.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 48.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $3.9B | 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 Growth
Operating cash flow was higher than both the prior quarter and the same quarter last year, contributing to the increase in free cash flow and free cash flow margin.
Higher operating cash flow was the strongest observable driver of improved free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the year-ago quarter and slightly higher than the prior quarter. Operating cash flow increased, capital expenditure decreased, and free cash flow rose, resulting in a higher free cash flow margin.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, all metrics improved: operating cash flow, free cash flow, and free cash flow margin were higher, and capital expenditure was lower.
Monitor the trend in capital expenditure, which decreased this quarter compared to both the prior quarter and the year-ago quarter.