Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly compared to the same quarter last year, driven by higher revenue and operating cash flow. The current quarter's free cash flow margin strengthened versus the year-ago period but weakened slightly from the prior quarter.
- Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow rose substantially year-over-year but was slightly lower than the prior quarter. Capital expenditure was stable, resulting in free cash flow that improved markedly from a year ago but decreased modestly from the previous quarter.
- Compared to the prior quarter, revenue was higher while operating cash flow and free cash flow were slightly lower, leading to a weakened free cash flow margin. Versus the same quarter last year, all metrics improved substantially, with free cash flow margin rising from a low level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$199.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$209.0M
Cash generated by operations before capital spending.
CapEx
$10.0M
Capital spending and related asset purchases.
FCF margin
12.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-10-31 | $1.6B | $209.0M | $10.0M | $199.0M | 12.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 72.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$863.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue increased compared to both the prior quarter and the same quarter last year, providing a stronger base for cash generation. This was the most observable driver of the improvement in free cash flow versus the year-ago period.
Higher revenue supported a substantial year-over-year increase in operating cash flow and free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow rose substantially year-over-year but was slightly lower than the prior quarter. Capital expenditure was stable, resulting in free cash flow that improved markedly from a year ago but decreased modestly from the previous quarter.
Compared to the prior quarter, revenue was higher while operating cash flow and free cash flow were slightly lower, leading to a weakened free cash flow margin. Versus the same quarter last year, all metrics improved substantially, with free cash flow margin rising from a low level.
Monitor the transition to annual billings for multi-year contracts, as it may affect the timing of cash collections and operating cash flow.