Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Operating cash flow and free cash flow improved significantly versus both periods, resulting in a positive free cash flow margin.
- Revenue remained level with the prior quarter, while operating cash flow rose sharply, driving free cash flow higher. Capital expenditure was slightly lower than both the preceding quarter and the year-ago quarter, supporting the improvement in free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow turned from negative to positive, and the margin improved from negative to positive. Versus the same quarter one year earlier, free cash flow also shifted from negative to positive, with a corresponding margin improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$62.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$172.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$195.5M
Cash generated by operations before capital spending.
CapEx
$22.8M
Capital spending and related asset purchases.
FCF margin
15.3%
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 |
|---|---|---|---|---|---|
| 2023-01-28 | $1.1B | -$265.6M | $30.0M | -$295.7M | -28.0% |
| 2023-04-29 | $1.1B | $229.8M | $28.0M | $201.8M | 17.8% |
| 2023-07-29 | $1.1B | $8.7M | $25.4M | -$16.7M | -1.6% |
| 2023-10-28 | $1.1B | $195.5M | $22.8M | $172.7M | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 189.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$544.5M | 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 Recovery
Operating cash flow increased substantially from the prior quarter and the year-ago quarter, while revenue was stable. This was the strongest observable driver of the free cash flow improvement.
The rise in operating cash flow converted stable revenue into positive free cash flow and a healthy margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained level with the prior quarter, while operating cash flow rose sharply, driving free cash flow higher. Capital expenditure was slightly lower than both the preceding quarter and the year-ago quarter, supporting the improvement in free cash flow margin.
Compared to the immediately preceding quarter, free cash flow turned from negative to positive, and the margin improved from negative to positive. Versus the same quarter one year earlier, free cash flow also shifted from negative to positive, with a corresponding margin improvement.
Monitor whether operating cash flow can sustain its current level relative to revenue in future quarters.