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 but lower than the same quarter last year. Operating cash flow and free cash flow improved sequentially, though both remained below the year-ago level.
- With revenue unchanged from the previous quarter, the increase in operating cash flow drove free cash flow higher, while capital expenditure decreased slightly. The free cash flow margin strengthened relative to the prior quarter.
- Compared to the immediately preceding quarter, operating cash flow improved and capital expenditure declined, leading to a higher free cash flow. Versus the same quarter one year earlier, operating cash flow, free cash flow, and the margin were all lower despite a modest reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$360.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$452.0M
Cash generated by operations before capital spending.
CapEx
$92.0M
Capital spending and related asset purchases.
FCF margin
22.8%
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 |
|---|---|---|---|---|---|
| 2023-10-31 | $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% |
| 2024-07-31 | $1.6B | $452.0M | $92.0M | $360.0M | 22.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 127.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$358.0M | 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 improvement
Operating cash flow rose significantly from the prior quarter, providing the primary uplift to free cash flow even as revenue remained flat. This was the strongest observable factor in the quarter's cash conversion performance.
The improved operating cash flow allowed free cash flow to more than recover from the prior quarter's level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged from the previous quarter, the increase in operating cash flow drove free cash flow higher, while capital expenditure decreased slightly. The free cash flow margin strengthened relative to the prior quarter.
Compared to the immediately preceding quarter, operating cash flow improved and capital expenditure declined, leading to a higher free cash flow. Versus the same quarter one year earlier, operating cash flow, free cash flow, and the margin were all lower despite a modest reduction in capital expenditure.
Capital expenditure, which increased year-over-year despite a sequential decline, is a metric to monitor for its impact on free cash flow generation.