Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened sharply versus both the prior quarter and the same quarter last year, driven by lower operating cash flow and higher capital expenditure. Revenue was stable sequentially but improved year-over-year, while free cash flow margin contracted significantly in both comparisons.
- Operating cash flow was lower than revenue, and after deducting capital expenditure, free cash flow was a small fraction of revenue, resulting in a low free cash flow margin. The conversion from revenue to free cash flow was less efficient than in the prior periods.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while capital expenditure was higher, leading to a weakened free cash flow margin. Versus the same quarter one year earlier, operating cash flow and free cash flow were substantially lower, and capital expenditure was higher, resulting in a much lower free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$471.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$39.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$94.0M
Cash generated by operations before capital spending.
CapEx
$55.0M
Capital spending and related asset purchases.
FCF margin
3.6%
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 |
|---|---|---|---|---|---|
| 2022-04-30 | $996.0M | $253.0M | $76.0M | $177.0M | 17.8% |
| 2022-07-31 | $1.0B | $173.0M | $33.0M | $140.0M | 13.9% |
| 2022-10-31 | $1.1B | $143.0M | $28.0M | $115.0M | 10.5% |
| 2023-01-31 | $1.1B | $94.0M | $55.0M | $39.0M | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 39.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.6B | 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 was lower than both the prior quarter and the year-ago quarter, while capital expenditure increased. This combination drove free cash flow and its margin to lower levels.
The lower operating cash flow was the strongest observable driver of the weakened free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than revenue, and after deducting capital expenditure, free cash flow was a small fraction of revenue, resulting in a low free cash flow margin. The conversion from revenue to free cash flow was less efficient than in the prior periods.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while capital expenditure was higher, leading to a weakened free cash flow margin. Versus the same quarter one year earlier, operating cash flow and free cash flow were substantially lower, and capital expenditure was higher, resulting in a much lower free cash flow margin.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the weakened free cash flow.