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 and higher than the same quarter last year. However, operating cash flow and free cash flow weakened significantly, leading to a much lower free cash flow margin.
- Operating cash flow fell sharply relative to revenue, resulting in a free cash flow margin that was lower than both the prior quarter and the year-ago quarter. Capital expenditure remained modest, so the decline was driven entirely by lower cash generation from operations.
- Compared to the prior quarter, revenue was stable while operating cash flow and free cash flow were much lower. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$128.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$135.0M
Cash generated by operations before capital spending.
CapEx
$7.0M
Capital spending and related asset purchases.
FCF margin
9.5%
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 |
|---|---|---|---|---|---|
| 2022-10-31 | $1.3B | $469.0M | $9.0M | $460.0M | 35.9% |
| 2023-01-31 | $1.3B | $911.0M | $8.0M | $903.0M | 68.5% |
| 2023-04-30 | $1.3B | $723.0M | $9.0M | $714.0M | 56.3% |
| 2023-07-31 | $1.3B | $135.0M | $7.0M | $128.0M | 9.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 57.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$586.0M | 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 dropped sharply from the prior quarter and year-ago quarter, despite stable revenue. This was the primary factor behind the lower free cash flow and margin.
The weakened cash conversion rate may persist if the timing of billings and collections remains affected.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow fell sharply relative to revenue, resulting in a free cash flow margin that was lower than both the prior quarter and the year-ago quarter. Capital expenditure remained modest, so the decline was driven entirely by lower cash generation from operations.
Compared to the prior quarter, revenue was stable while operating cash flow and free cash flow were much lower. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower.
Monitor the impact of the transition to annual billings for multi-year contracts on cash collection timing, as noted in the filing.