Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative this quarter, driven by operating cash flow that was lower than capital expenditure. Revenue and operating cash flow both decreased compared to the prior quarter and the same quarter last year.
- Revenue conversion into operating cash flow weakened, as operating cash flow was a small fraction of revenue, resulting in a negative free cash flow margin. Capital expenditure exceeded operating cash flow, leading to a free cash flow deficit.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all substantially lower. Versus the same quarter one year earlier, revenue was lower, operating cash flow was lower, and free cash flow remained negative with a more negative margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$406.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$24.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$17.0M
Cash generated by operations before capital spending.
CapEx
$41.0M
Capital spending and related asset purchases.
FCF margin
-2.5%
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 | $1.1B | $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% |
| 2024-07-31 | $951.0M | $17.0M | $41.0M | -$24.0M | -2.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -12.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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.
Operating Cash Flow Weakness
Operating cash flow was the strongest observable driver of the negative free cash flow, as it was insufficient to fund capital expenditure. The filing context shows net sales and operating income both declined year-over-year, but no causal link to cash flow is stated.
The shortfall between operating cash flow and capital expenditure directly produced a negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into operating cash flow weakened, as operating cash flow was a small fraction of revenue, resulting in a negative free cash flow margin. Capital expenditure exceeded operating cash flow, leading to a free cash flow deficit.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all substantially lower. Versus the same quarter one year earlier, revenue was lower, operating cash flow was lower, and free cash flow remained negative with a more negative margin.
Monitor whether operating cash flow can cover capital expenditure in future quarters, given the current deficit.