Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the previous quarter but higher than the same quarter last year. Free cash flow turned negative, weakening from both the prior quarter and the year-ago period.
- Operating cash flow was negative, resulting in negative free cash flow after capital expenditure. The free cash flow margin was negative, indicating cash conversion weakened compared to the prior quarter's positive margin.
- Compared to the previous quarter, revenue, operating cash flow, and free cash flow all declined, with free cash flow turning from positive to negative. Versus the same quarter last year, revenue improved, but operating cash flow and free cash flow worsened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$51.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$36.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$32.0M
Cash generated by operations before capital spending.
CapEx
$4.9M
Capital spending and related asset purchases.
FCF margin
-8.4%
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 | $251.2M | -$6.7M | $214000 | -$7.0M | -2.8% |
| 2022-07-30 | $254.7M | -$29.0M | $7.5M | -$36.5M | -14.3% |
| 2022-10-29 | $608.6M | $38.4M | $9.3M | $29.1M | 4.8% |
| 2023-01-28 | $438.1M | -$32.0M | $4.9M | -$36.8M | -8.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 147.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$274.4M | 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 Swing
Operating cash flow shifted from positive in the prior quarter to negative in the current quarter, and was also more negative than the same period last year. This occurred despite lower capital expenditure.
The negative operating cash flow drove free cash flow to a deficit, reversing the prior quarter's surplus.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, resulting in negative free cash flow after capital expenditure. The free cash flow margin was negative, indicating cash conversion weakened compared to the prior quarter's positive margin.
Compared to the previous quarter, revenue, operating cash flow, and free cash flow all declined, with free cash flow turning from positive to negative. Versus the same quarter last year, revenue improved, but operating cash flow and free cash flow worsened.
Monitor the trajectory of operating cash flow, as its swing to negative was the primary factor behind the free cash flow decline.