Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated positive free cash flow this quarter, driven by strong operating cash flow relative to revenue. The free cash flow margin improved from the prior quarter but remained below the year-ago level.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin indicates the share of revenue converted into free cash.
- Compared to the prior quarter, free cash flow improved from negative to positive as operating cash flow turned favorable. Compared to the same quarter a year ago, free cash flow was lower despite lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$19.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$79.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$81.7M
Cash generated by operations before capital spending.
CapEx
$2.6M
Capital spending and related asset purchases.
FCF margin
33.5%
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 |
|---|---|---|---|---|---|
| 2023-07-29 | $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% |
| 2024-04-27 | $235.9M | $81.7M | $2.6M | $79.1M | 33.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -188.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$185.9M | 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
The key driver this quarter was the shift in operating cash flow from negative in the prior quarter to positive. This improvement was the primary reason for the positive free cash flow.
Positive operating cash flow enabled the company to cover capital expenditure and generate free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin indicates the share of revenue converted into free cash.
Compared to the prior quarter, free cash flow improved from negative to positive as operating cash flow turned favorable. Compared to the same quarter a year ago, free cash flow was lower despite lower capital expenditure.
Monitor the consistency of operating cash flow generation in upcoming quarters.