Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved year-over-year but weakened sequentially due to higher capital expenditure.
- Operating cash flow rose relative to revenue, supporting free cash flow generation. Capital expenditure increased from both comparison periods, which reduced the conversion of operating cash flow into free cash flow.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but free cash flow was lower and free cash flow margin weakened due to higher capital expenditure. Versus the same quarter one year earlier, all metrics were higher and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$402.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$145.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$252.6M
Cash generated by operations before capital spending.
CapEx
$107.1M
Capital spending and related asset purchases.
FCF margin
3.6%
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 |
|---|---|---|---|---|---|
| 2023-01-31 | $3.3B | $150.5M | $124.0M | $26.5M | 0.8% |
| 2023-04-30 | $3.3B | $245.4M | $175.3M | $70.1M | 2.1% |
| 2023-07-31 | $3.9B | $229.1M | $68.9M | $160.2M | 4.1% |
| 2023-10-31 | $4.1B | $252.6M | $107.1M | $145.6M | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.2B | 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 Growth
Operating cash flow was higher than both the prior quarter and the year-ago quarter, providing a stronger base for free cash flow. This was the strongest observable driver of the quarter's cash generation.
Higher operating cash flow supported free cash flow despite increased capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to revenue, supporting free cash flow generation. Capital expenditure increased from both comparison periods, which reduced the conversion of operating cash flow into free cash flow.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but free cash flow was lower and free cash flow margin weakened due to higher capital expenditure. Versus the same quarter one year earlier, all metrics were higher and free cash flow margin improved.
Monitor the trend in capital expenditure, as its sequential increase outpaced the growth in operating cash flow.