Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive and free cash flow improved significantly compared to the prior quarter, with free cash flow margin rising sharply. Revenue was stable versus the prior quarter and higher than the same quarter last year, while free cash flow exceeded both comparisons.
- Revenue remained stable from the prior quarter, while operating cash flow swung from negative to positive, resulting in a substantial improvement in free cash flow and margin. Capital expenditure was slightly lower than the prior quarter but higher than the year-ago quarter.
- Compared to the prior quarter, operating cash flow and free cash flow both improved from negative to positive, and free cash flow margin rose notably. Compared to the same quarter last year, revenue was higher, operating cash flow and free cash flow were both higher, and free cash flow margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$359.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$201.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$229.8M
Cash generated by operations before capital spending.
CapEx
$28.0M
Capital spending and related asset purchases.
FCF margin
17.8%
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 |
|---|---|---|---|---|---|
| 2022-07-30 | $868.0M | -$205.4M | $21.7M | -$227.0M | -26.2% |
| 2022-10-29 | $971.0M | -$14.5M | $23.9M | -$38.4M | -4.0% |
| 2023-01-28 | $1.1B | -$265.6M | $30.0M | -$295.7M | -28.0% |
| 2023-04-29 | $1.1B | $229.8M | $28.0M | $201.8M | 17.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 350.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$390.6M | 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 Reversal
The shift from negative operating cash flow in the prior quarter to positive in the current quarter was the strongest observable driver, as free cash flow followed the same pattern. This change occurred while revenue remained stable.
Free cash flow improved sharply from negative to positive, and the free cash flow margin rose accordingly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable from the prior quarter, while operating cash flow swung from negative to positive, resulting in a substantial improvement in free cash flow and margin. Capital expenditure was slightly lower than the prior quarter but higher than the year-ago quarter.
Compared to the prior quarter, operating cash flow and free cash flow both improved from negative to positive, and free cash flow margin rose notably. Compared to the same quarter last year, revenue was higher, operating cash flow and free cash flow were both higher, and free cash flow margin also improved.
Monitor whether operating cash flow remains positive in the coming quarter, given the prior quarter's negative cash flow.