Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter last year but lower than the prior quarter. Free cash flow improved year-over-year, though operating cash flow and free cash flow both declined sequentially.
- Operating cash flow fell relative to the prior quarter, while capital expenditure also decreased. The resulting free cash flow margin was lower sequentially but higher than the year-ago period.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower. Versus the same quarter a year earlier, revenue was stable, operating cash flow was slightly lower, but free cash flow increased due to lower capital expenditure.
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
$456.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$685.2M
Cash generated by operations before capital spending.
CapEx
$228.4M
Capital spending and related asset purchases.
FCF margin
18.5%
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 |
|---|---|---|---|---|---|
| 2024-02-29 | $2.1B | $433.2M | $357.2M | $76.0M | 3.6% |
| 2024-05-31 | $2.7B | $690.5M | $375.3M | $315.2M | 11.8% |
| 2024-08-31 | $2.9B | $1.2B | $327.8M | $854.0M | 29.3% |
| 2024-11-30 | $2.5B | $685.2M | $228.4M | $456.8M | 18.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Decline
Operating cash flow decreased from the prior quarter, while capital expenditure also fell. The reduction in operating cash flow was the primary factor behind the lower free cash flow.
The lower operating cash flow weakened cash conversion efficiency compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow fell relative to the prior quarter, while capital expenditure also decreased. The resulting free cash flow margin was lower sequentially but higher than the year-ago period.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower. Versus the same quarter a year earlier, revenue was stable, operating cash flow was slightly lower, but free cash flow increased due to lower capital expenditure.
Monitor whether the sequential decline in operating cash flow reverses or continues in the coming quarters.