Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the same quarter last year, supported by higher operating cash flow. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow rose compared to both periods, while capital expenditure increased moderately. The resulting free cash flow and free cash flow margin both improved sequentially and year-over-year.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, leading to a higher free cash flow margin. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, and free cash flow margin was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$419.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$205.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$285.0M
Cash generated by operations before capital spending.
CapEx
$80.0M
Capital spending and related asset purchases.
FCF margin
21.3%
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 |
|---|---|---|---|---|---|
| 2023-07-31 | $1.0B | $38.0M | $49.0M | -$11.0M | -1.1% |
| 2023-10-31 | $1.1B | $59.0M | $30.0M | $29.0M | 2.6% |
| 2024-01-31 | $1.1B | $265.0M | $69.0M | $196.0M | 18.3% |
| 2024-04-30 | $964.0M | $285.0M | $80.0M | $205.0M | 21.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 77.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.2B | 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 Strength
Operating cash flow was higher than both the prior quarter and the same quarter last year, providing the primary support for the improvement in free cash flow.
Higher operating cash flow drove the free cash flow margin higher despite lower revenue compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow rose compared to both periods, while capital expenditure increased moderately. The resulting free cash flow and free cash flow margin both improved sequentially and year-over-year.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, leading to a higher free cash flow margin. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, and free cash flow margin was higher.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter.