Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved year-over-year driven by higher operating cash flow, though it dipped slightly from the prior quarter. The free cash flow margin strengthened substantially compared to the same quarter last year but edged lower sequentially.
- Revenue was stable sequentially and slightly lower year-over-year. Operating cash flow rose sharply from the year-ago quarter and was modestly lower than the prior quarter, leading to free cash flow after capital expenditure. The resulting free cash flow margin was in the mid-twenties.
- Compared to the preceding quarter, free cash flow and its margin decreased marginally on similar revenue and slightly higher capital expenditure. Versus the same quarter one year earlier, free cash flow was significantly higher and the margin improved markedly, driven by a strong increase in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$395.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$485.0M
Cash generated by operations before capital spending.
CapEx
$90.0M
Capital spending and related asset purchases.
FCF margin
23.8%
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 |
|---|---|---|---|---|---|
| 2023-04-30 | $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% |
| 2024-01-31 | $1.7B | $485.0M | $90.0M | $395.0M | 23.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 113.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$807.0M | 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
Operating cash flow rose substantially year-over-year, outpacing the decline in revenue and supporting higher free cash flow.
This drove a significant improvement in free cash flow margin despite slightly higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and slightly lower year-over-year. Operating cash flow rose sharply from the year-ago quarter and was modestly lower than the prior quarter, leading to free cash flow after capital expenditure. The resulting free cash flow margin was in the mid-twenties.
Compared to the preceding quarter, free cash flow and its margin decreased marginally on similar revenue and slightly higher capital expenditure. Versus the same quarter one year earlier, free cash flow was significantly higher and the margin improved markedly, driven by a strong increase in operating cash flow.
Monitor the trend in free cash flow margin, which declined slightly from the prior quarter.