Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned strongly positive, driving a sharp improvement in free cash flow and margin compared to both the prior quarter and the same quarter last year. Revenue was lower than the prior quarter but relatively stable versus the year-ago period.
- Revenue was lower than the preceding quarter, yet operating cash flow shifted from negative to positive, resulting in substantial free cash flow and a healthy free cash flow margin. Capital expenditure remained modest relative to operating cash flow.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved sharply from negative to positive, while margin increased significantly. Versus the same quarter one year earlier, the company also moved from negative free cash flow and margin to positive figures, with capital expenditure slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$66.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$110.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$114.3M
Cash generated by operations before capital spending.
CapEx
$3.4M
Capital spending and related asset purchases.
FCF margin
45.8%
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 |
|---|---|---|---|---|---|
| 2022-07-30 | $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% |
| 2023-04-29 | $241.8M | $114.3M | $3.4M | $110.9M | 45.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -239.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$167.9M | 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 Reversal
The most significant observable change was the swing in operating cash flow from negative in both comparison periods to strongly positive in the current quarter. This drove the free cash flow and margin improvement.
The company generated positive free cash flow for the quarter, contrasting with negative free cash flow in both the prior and year-ago quarters.
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, yet operating cash flow shifted from negative to positive, resulting in substantial free cash flow and a healthy free cash flow margin. Capital expenditure remained modest relative to operating cash flow.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved sharply from negative to positive, while margin increased significantly. Versus the same quarter one year earlier, the company also moved from negative free cash flow and margin to positive figures, with capital expenditure slightly higher.
Monitor whether the operating cash flow strength can be sustained in the next quarter, especially given the seasonal revenue decline from the prior quarter.