Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined compared to both the prior quarter and the same quarter last year. Operating cash flow and free cash flow also decreased, leading to a weaker free cash flow margin.
- Revenue was lower while operating cash flow fell more sharply, and capital expenditure increased, resulting in a lower free cash flow and a narrower free cash flow margin.
- Compared with the immediately preceding quarter, all metrics weakened: revenue, operating cash flow, and free cash flow were lower, while capital expenditure was higher. Versus the same quarter one year earlier, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow was lower.
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
$230.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$333.0M
Cash generated by operations before capital spending.
CapEx
$103.0M
Capital spending and related asset purchases.
FCF margin
14.6%
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 |
|---|---|---|---|---|---|
| 2023-07-31 | $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% |
| 2024-04-30 | $1.6B | $333.0M | $103.0M | $230.0M | 14.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$465.0M | 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 Decline
Operating cash flow decreased compared to both the prior quarter and the same quarter last year, which was the primary factor behind the reduction in free cash flow.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower while operating cash flow fell more sharply, and capital expenditure increased, resulting in a lower free cash flow and a narrower free cash flow margin.
Compared with the immediately preceding quarter, all metrics weakened: revenue, operating cash flow, and free cash flow were lower, while capital expenditure was higher. Versus the same quarter one year earlier, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow was lower.
Capital expenditure rose compared to both the prior quarter and the year-ago period; its trend warrants monitoring.