Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply from both the prior quarter and the year-ago quarter, driven by higher operating cash flow. The free cash flow margin widened as revenue grew and capital expenditure declined.
- Revenue rose compared to the previous quarter and the same quarter last year. Operating cash flow increased, capital expenditure decreased, and free cash flow grew, resulting in a higher free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher, and all cash flow metrics improved, with a notably wider free cash flow margin. Versus the same quarter one year earlier, revenue was also higher, operating cash flow and free cash flow increased, and the free cash flow margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$516.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$571.0M
Cash generated by operations before capital spending.
CapEx
$55.0M
Capital spending and related asset purchases.
FCF margin
24.7%
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 |
|---|---|---|---|---|---|
| 2023-10-31 | $1.9B | $451.0M | $60.0M | $391.0M | 21.0% |
| 2024-01-31 | $1.9B | $996.0M | $49.0M | $947.0M | 49.3% |
| 2024-04-30 | $2.0B | $372.0M | $81.0M | $291.0M | 14.6% |
| 2024-07-31 | $2.1B | $571.0M | $55.0M | $516.0M | 24.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 390.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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 operating cash flow
Operating cash flow increased meaningfully from both the prior quarter and the year-ago quarter. This was the primary factor behind the rise in free cash flow and the improvement in free cash flow margin.
Higher operating cash flow directly lifted free cash flow and margin without requiring a similar increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose compared to the previous quarter and the same quarter last year. Operating cash flow increased, capital expenditure decreased, and free cash flow grew, resulting in a higher free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher, and all cash flow metrics improved, with a notably wider free cash flow margin. Versus the same quarter one year earlier, revenue was also higher, operating cash flow and free cash flow increased, and the free cash flow margin strengthened.
Track the trend in capital expenditure, which declined from both comparison periods and contributed to the stronger free cash flow.