Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to the prior quarter and the same quarter last year. Despite higher revenue, free cash flow and free cash flow margin both declined versus the prior quarter and the year-ago quarter.
- Operating cash flow decreased compared to both the prior quarter and the year-ago quarter, while capital expenditure also declined. The combination resulted in free cash flow that was lower than both comparable periods, with the free cash flow margin narrowing accordingly.
- Compared to the immediate prior quarter, revenue improved but operating cash flow weakened, leading to a lower free cash flow and margin. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin all declined.
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
$359.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$406.0M
Cash generated by operations before capital spending.
CapEx
$47.0M
Capital spending and related asset purchases.
FCF margin
16.6%
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 |
|---|---|---|---|---|---|
| 2024-01-31 | $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% |
| 2024-10-31 | $2.2B | $406.0M | $47.0M | $359.0M | 16.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 186.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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.
Operating cash flow decline
Operating cash flow fell versus both the prior quarter and the year-ago quarter, while revenue increased. This divergence was the strongest observable factor behind the weaker free cash flow and margin.
The decline in operating cash flow more than offset the benefit from lower capital expenditure, resulting in a lower free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased compared to both the prior quarter and the year-ago quarter, while capital expenditure also declined. The combination resulted in free cash flow that was lower than both comparable periods, with the free cash flow margin narrowing accordingly.
Compared to the immediate prior quarter, revenue improved but operating cash flow weakened, leading to a lower free cash flow and margin. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin all declined.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially and year-over-year despite higher revenue.