Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the same quarter last year, but operating cash flow turned positive and free cash flow improved significantly. The free cash flow margin strengthened compared to both the prior quarter and the year-ago period, driven by a higher operating cash flow and lower capital expenditure.
- Revenue was lower than the year-ago quarter, yet operating cash flow rose substantially, turning from negative in the prior quarter to positive. Capital expenditure decreased, and free cash flow was positive with a higher margin, indicating improved cash conversion efficiency.
- Compared to the prior quarter, operating cash flow and free cash flow both improved from negative to positive, while capital expenditure was stable. Relative to the same quarter last year, revenue was lower, but operating cash flow, free cash flow, and margin all strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$68.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$72.0M
Cash generated by operations before capital spending.
CapEx
$4.0M
Capital spending and related asset purchases.
FCF margin
11.9%
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 |
|---|---|---|---|---|---|
| 2023-01-28 | $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% |
| 2023-10-28 | $569.7M | $72.0M | $4.0M | $68.0M | 11.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 239.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$218.9M | 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 Turnaround
Operating cash flow swung from a large negative in the prior quarter to a positive figure in the current quarter, and also increased compared to the same quarter last year. This shift was the primary factor behind the positive free cash flow.
The improvement in operating cash flow directly drove free cash flow higher and expanded the margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the year-ago quarter, yet operating cash flow rose substantially, turning from negative in the prior quarter to positive. Capital expenditure decreased, and free cash flow was positive with a higher margin, indicating improved cash conversion efficiency.
Compared to the prior quarter, operating cash flow and free cash flow both improved from negative to positive, while capital expenditure was stable. Relative to the same quarter last year, revenue was lower, but operating cash flow, free cash flow, and margin all strengthened.
Monitor the trend in capital expenditure, which decreased from the year-ago level and could impact future free cash flow generation.