Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter after a negative prior quarter, supported by higher operating cash flow. Revenue increased compared to both the prior quarter and the same quarter last year.
- Operating cash flow as a share of revenue improved versus the prior quarter and the year-ago quarter, driving a positive free cash flow margin. Capital expenditure rose from both comparison periods, but the increase in operating cash flow more than offset the higher spending.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, and free cash flow margin turned positive from negative. Versus the same quarter last year, revenue and free cash flow were higher, while operating cash flow and free cash flow margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$370.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$92.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$288.4M
Cash generated by operations before capital spending.
CapEx
$196.3M
Capital spending and related asset purchases.
FCF margin
2.6%
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 |
|---|---|---|---|---|---|
| 2023-07-31 | $3.9B | $229.1M | $68.9M | $160.2M | 4.1% |
| 2023-10-31 | $4.1B | $252.6M | $107.1M | $145.6M | 3.6% |
| 2024-01-31 | $3.3B | $122.8M | $149.8M | -$27.0M | -0.8% |
| 2024-04-30 | $3.6B | $288.4M | $196.3M | $92.1M | 2.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | 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 Improvement
Operating cash flow rose substantially from the prior quarter and increased from the year-ago quarter, providing the primary lift to free cash flow. This improvement occurred alongside higher revenue.
The stronger operating cash flow turned free cash flow positive and expanded the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue improved versus the prior quarter and the year-ago quarter, driving a positive free cash flow margin. Capital expenditure rose from both comparison periods, but the increase in operating cash flow more than offset the higher spending.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, and free cash flow margin turned positive from negative. Versus the same quarter last year, revenue and free cash flow were higher, while operating cash flow and free cash flow margin also improved.
Monitor whether operating cash flow can sustain its current level relative to revenue, given the increase in capital expenditure.