Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased in the current quarter compared to both the prior quarter and the same quarter a year ago. However, operating cash flow and free cash flow declined substantially from the prior quarter, though they improved relative to the year-ago period.
- Revenue was higher than in the prior quarter, yet operating cash flow was lower, resulting in a lower free cash flow margin. Capital expenditure remained relatively stable, so the cash conversion was primarily driven by the change in operating cash flow.
- Compared to the prior quarter, free cash flow and margin weakened significantly. Compared to the same quarter a year ago, free cash flow and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$203.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$212.0M
Cash generated by operations before capital spending.
CapEx
$9.0M
Capital spending and related asset purchases.
FCF margin
13.5%
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 |
|---|---|---|---|---|---|
| 2023-10-31 | $1.4B | $18.0M | $5.0M | $13.0M | 0.9% |
| 2024-01-31 | $1.5B | $437.0M | $10.0M | $427.0M | 29.1% |
| 2024-04-30 | $1.4B | $494.0M | $7.0M | $487.0M | 34.4% |
| 2024-07-31 | $1.5B | $212.0M | $9.0M | $203.0M | 13.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 72.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$787.0M | 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 variability
Operating cash flow decreased sharply from the prior quarter despite higher revenue. The filing describes a transition to annual billings for multi-year contracts that may affect cash collection timing.
This variability in cash flow timing could lead to uneven quarterly free cash flow comparisons.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than in the prior quarter, yet operating cash flow was lower, resulting in a lower free cash flow margin. Capital expenditure remained relatively stable, so the cash conversion was primarily driven by the change in operating cash flow.
Compared to the prior quarter, free cash flow and margin weakened significantly. Compared to the same quarter a year ago, free cash flow and margin improved.
Monitor the impact of the transition to annual billings for multi-year contracts on the timing of cash collections, as noted in the filing.