Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Free cash flow and free cash flow margin improved markedly compared to both the preceding quarter and the year-ago quarter.
- Operating cash flow increased while capital expenditure decreased, resulting in a substantially higher free cash flow. The free cash flow margin expanded as free cash flow grew faster than revenue.
- Compared to the prior quarter, revenue was slightly lower but operating cash flow and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter last year, revenue and all cash flow measures were higher, with a stronger free cash flow margin.
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
$341.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$398.0M
Cash generated by operations before capital spending.
CapEx
$57.0M
Capital spending and related asset purchases.
FCF margin
19.9%
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 |
|---|---|---|---|---|---|
| 2022-07-31 | $1.7B | $326.0M | $82.0M | $244.0M | 14.2% |
| 2022-10-31 | $1.8B | $448.0M | $70.0M | $378.0M | 20.4% |
| 2023-01-31 | $1.8B | $296.0M | $76.0M | $220.0M | 12.5% |
| 2023-04-30 | $1.7B | $398.0M | $57.0M | $341.0M | 19.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 112.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.6B | 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 Growth
The primary observable driver was a significant increase in operating cash flow compared to both the immediate preceding quarter and the same quarter one year earlier.
This generated the highest free cash flow and free cash flow margin among the three reported quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased while capital expenditure decreased, resulting in a substantially higher free cash flow. The free cash flow margin expanded as free cash flow grew faster than revenue.
Compared to the prior quarter, revenue was slightly lower but operating cash flow and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter last year, revenue and all cash flow measures were higher, with a stronger free cash flow margin.
Monitor the trajectory of capital expenditure given its notable decline from both the prior quarter and the year-ago quarter.