Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the current quarter due to negative operating cash flow. Revenue was lower than both the prior quarter and the same quarter last year.
- Revenue declined compared to the prior quarter, and operating cash flow turned negative from positive, resulting in negative free cash flow. Capital expenditure remained relatively stable.
- Compared to the immediately preceding quarter, free cash flow shifted from positive to negative as operating cash flow weakened. Compared to the same quarter last year, free cash flow was slightly more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$39.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$35.8M
Cash generated by operations before capital spending.
CapEx
$3.3M
Capital spending and related asset purchases.
FCF margin
-9.4%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-01-27 | $415.4M | -$35.8M | $3.3M | -$39.0M | -9.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 418.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$22.1M | 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
Operating cash flow moved from a positive to a negative amount from the prior quarter, driving the free cash flow decline. Compared to the same quarter last year, operating cash flow was slightly lower.
The negative operating cash flow resulted in negative free cash flow and a weakened free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined compared to the prior quarter, and operating cash flow turned negative from positive, resulting in negative free cash flow. Capital expenditure remained relatively stable.
Compared to the immediately preceding quarter, free cash flow shifted from positive to negative as operating cash flow weakened. Compared to the same quarter last year, free cash flow was slightly more negative.
Monitor the trajectory of operating cash flow in the coming quarters.