Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined this quarter relative to both the prior quarter and the same quarter last year, largely due to a significant increase in capital expenditure. Operating cash flow was stable sequentially but weaker year over year.
- Revenue remained stable sequentially but decreased year over year. Operating cash flow increased slightly from the prior quarter, yet a substantial rise in capital expenditure drove free cash flow and margin lower on both comparisons.
- Sequentially, free cash flow and margin declined despite steady revenue, due to markedly higher capital spending. Compared to a year ago, lower revenue and operating cash flow, combined with increased capex, resulted in weaker free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$170.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$253.5M
Cash generated by operations before capital spending.
CapEx
$83.4M
Capital spending and related asset purchases.
FCF margin
9.4%
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 |
|---|---|---|---|---|---|
| 2024-01-28 | $2.3B | $674.9M | $53.6M | $621.2M | 27.3% |
| 2024-04-28 | $1.7B | $226.8M | $39.5M | $187.3M | 11.3% |
| 2024-07-28 | $1.8B | $246.5M | $31.4M | $215.1M | 12.0% |
| 2024-10-27 | $1.8B | $253.5M | $83.4M | $170.1M | 9.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | 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.
Capital Expenditure Increase
Capital expenditure rose substantially compared to both the prior quarter and the year-ago quarter, while operating cash flow showed only modest sequential improvement.
The higher spending reduced free cash flow and margin despite relatively stable operating cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable sequentially but decreased year over year. Operating cash flow increased slightly from the prior quarter, yet a substantial rise in capital expenditure drove free cash flow and margin lower on both comparisons.
Sequentially, free cash flow and margin declined despite steady revenue, due to markedly higher capital spending. Compared to a year ago, lower revenue and operating cash flow, combined with increased capex, resulted in weaker free cash flow.
Monitor the trend in capital expenditure, as its increase this quarter significantly impacted free cash flow generation.