Super Micro Computer, Inc.SMCI
NasdaqGS•Technology•Computer Hardware
Understand cash generation quality and how management allocates capital.
Free cash flow was $-6.70B in the latest quarter (1227.1% decrease YoY). FCF margin is -19.9%. Shares outstanding increased by 0.9% year-over-year, indicating dilution (potentially from stock compensation or capital raises). Free cash flow is the lifeblood of a business — it funds dividends, buybacks, debt reduction, and reinvestment without relying on external capital.
Free cash flow, earnings quality, and capital allocation