What’s Driving Splunk’s Free Cash Flow?

Splunk (SPLK) has continued to generate strong free cash flow, driven by high-value deals and a growing customer base. Splunk has added ~6,400 customers in the last three years at an average of more than 2,100 per year, highlighting the growing popularity of the company’s products across various industries. Given its lower capital expenditure and there being no sign of it enhancing investors’ wealth through capital returns, the company’s free cash flow may rise going forward.