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 rose versus the prior quarter and the same quarter last year, while revenue declined slightly from the preceding quarter. Free cash flow margin improved compared with both periods, reflecting a stronger cash conversion.
- Revenue was lower than the immediate prior quarter but higher than the same quarter one year earlier. Operating cash flow increased sequentially and year-over-year, leading to a higher free cash flow and an improved free cash flow margin.
- Compared with the preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were higher, resulting in a stronger free cash flow margin. Versus the same quarter one year ago, revenue, operating cash flow, free cash flow, and margin all showed improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$989.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$104.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$199.5M
Cash generated by operations before capital spending.
CapEx
$95.3M
Capital spending and related asset purchases.
FCF margin
4.1%
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 |
|---|---|---|---|---|---|
| 2023-10-28 | $2.5B | -$70.8M | $106.3M | -$177.1M | -7.1% |
| 2024-02-03 | $3.6B | $1.1B | $124.2M | $994.0M | 28.0% |
| 2024-05-04 | $2.7B | $159.3M | $91.0M | $68.3M | 2.5% |
| 2024-08-03 | $2.6B | $199.5M | $95.3M | $104.3M | 4.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 41.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | 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.
Stronger cash generation from operations
Operating cash flow rose from the prior quarter and from the same quarter last year, driving free cash flow higher despite a slight sequential revenue dip. Free cash flow margin improved notably versus both comparative periods.
Higher free cash flow and margin were supported primarily by stronger operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the immediate prior quarter but higher than the same quarter one year earlier. Operating cash flow increased sequentially and year-over-year, leading to a higher free cash flow and an improved free cash flow margin.
Compared with the preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were higher, resulting in a stronger free cash flow margin. Versus the same quarter one year ago, revenue, operating cash flow, free cash flow, and margin all showed improvement.
Monitor whether the sequential decline in revenue persists while operating cash flow remains elevated.