Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved markedly from the preceding quarter, driven by higher operating cash flow relative to revenue. However, compared to the same quarter one year earlier, free cash flow margin was lower, with operating cash flow declining despite a small increase in revenue.
- Revenue was lower than the preceding quarter, but operating cash flow rose substantially, leading to a higher free cash flow and an improved margin. Capital expenditure was also higher than the prior quarter, but the increase in operating cash flow more than offset this.
- Compared to the immediately preceding quarter, all cash flow metrics improved, with free cash flow margin rising sharply. Relative to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and margin were all lower, while capital expenditure was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$457.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$163.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$230.0M
Cash generated by operations before capital spending.
CapEx
$67.0M
Capital spending and related asset purchases.
FCF margin
15.6%
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 |
|---|---|---|---|---|---|
| 2022-07-31 | $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% |
| 2023-04-30 | $1.0B | $230.0M | $67.0M | $163.0M | 15.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 78.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger operating cash flow
Operating cash flow increased significantly from the preceding quarter, driving a higher free cash flow and margin even as revenue decreased.
This improvement was the primary factor behind the quarter's cash conversion performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter, but operating cash flow rose substantially, leading to a higher free cash flow and an improved margin. Capital expenditure was also higher than the prior quarter, but the increase in operating cash flow more than offset this.
Compared to the immediately preceding quarter, all cash flow metrics improved, with free cash flow margin rising sharply. Relative to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and margin were all lower, while capital expenditure was also lower.
The level of operating cash flow relative to revenue, as it declined year-over-year while revenue increased.