Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter reported a negative free cash flow, driven by a negative operating cash flow, resulting in a negative free cash flow margin. The company's business overview notes its focus on equitable access programs, including discounted course material delivery models.
- Revenue was higher than the preceding quarter but lower than the same quarter last year. Operating cash flow was negative and capital expenditure added to the cash outflow, resulting in negative free cash flow and a negative free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow weakened significantly, driven by a swing from positive to negative operating cash flow, while revenue increased slightly. Versus the same quarter one year earlier, free cash flow was more negative, with a similar revenue level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$24.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$127.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$123.1M
Cash generated by operations before capital spending.
CapEx
$4.2M
Capital spending and related asset purchases.
FCF margin
-50.4%
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 |
|---|---|---|---|---|---|
| 2022-10-29 | $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% |
| 2023-07-29 | $252.7M | -$123.1M | $4.2M | -$127.3M | -50.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 240.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$270.0M | 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 moved from a positive position in the prior quarter to a negative position in the current quarter, and was more negative than the same quarter a year ago. This change was the primary factor behind the free cash flow decline.
The large negative operating cash flow resulted in a significant free cash flow deficit for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the preceding quarter but lower than the same quarter last year. Operating cash flow was negative and capital expenditure added to the cash outflow, resulting in negative free cash flow and a negative free cash flow margin.
Compared to the immediately preceding quarter, free cash flow weakened significantly, driven by a swing from positive to negative operating cash flow, while revenue increased slightly. Versus the same quarter one year earlier, free cash flow was more negative, with a similar revenue level.
Monitor the trajectory of operating cash flow, as it shifted from positive in the prior quarter to negative in the current quarter.