Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter, while operating cash flow decreased and free cash flow margin weakened. Versus the same quarter last year, revenue was lower but cash conversion improved as operating cash flow and free cash flow margin were both higher.
- Operating cash flow was higher than capital expenditure, producing positive free cash flow with a margin of about a quarter of revenue. The conversion rate from revenue to free cash flow weakened sequentially but improved from the year-ago period.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, while capital expenditure was slightly higher, resulting in a weakened free cash flow margin. Compared to the same quarter one year earlier, operating cash flow and free cash flow were higher, and capital expenditure increased, leading to an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$432.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$516.0M
Cash generated by operations before capital spending.
CapEx
$84.0M
Capital spending and related asset purchases.
FCF margin
25.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-07-31 | $1.7B | $562.0M | $81.0M | $481.0M | 28.8% |
| 2023-10-31 | $1.7B | $516.0M | $84.0M | $432.0M | 25.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 90.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash flow improvement
Operating cash flow and free cash flow were higher than the same quarter last year, and the free cash flow margin increased notably. This is the strongest observable driver of the current quarter's cash generation performance.
It strengthened the company's cash generation position compared to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, producing positive free cash flow with a margin of about a quarter of revenue. The conversion rate from revenue to free cash flow weakened sequentially but improved from the year-ago period.
Compared to the prior quarter, operating cash flow and free cash flow were lower, while capital expenditure was slightly higher, resulting in a weakened free cash flow margin. Compared to the same quarter one year earlier, operating cash flow and free cash flow were higher, and capital expenditure increased, leading to an improved free cash flow margin.
Monitor the trend in capital expenditure relative to operating cash flow, as a higher proportion could pressure free cash flow conversion.