Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened sharply from the prior quarter and declined from a year ago, driven by lower revenue and operating cash flow. Capital expenditure remained stable, but the free cash flow margin contracted significantly.
- Revenue decreased compared to both the prior quarter and the same quarter last year, while operating cash flow fell more sharply, resulting in a lower free cash flow. The free cash flow margin contracted from the prior quarter and from a year ago, indicating weaker cash conversion efficiency.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue and operating cash flow were lower, and free cash flow declined, with the margin also contracting.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$447.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$41.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$58.5M
Cash generated by operations before capital spending.
CapEx
$16.9M
Capital spending and related asset purchases.
FCF margin
4.6%
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 |
|---|---|---|---|---|---|
| 2023-07-29 | $1.1B | $8.7M | $25.4M | -$16.7M | -1.6% |
| 2023-10-28 | $1.1B | $195.5M | $22.8M | $172.7M | 15.3% |
| 2024-01-27 | $1.0B | $266.1M | $16.6M | $249.5M | 24.0% |
| 2024-04-27 | $910.8M | $58.5M | $16.9M | $41.6M | 4.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -246.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$461.1M | 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 Decline
Operating cash flow decreased substantially from both the prior quarter and the year-ago quarter, driving the reduction in free cash flow. The filing context indicates that net income adjusted for non-cash charges and working capital provided cash in the first six months, but the quarterly comparison shows a notable decline.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased compared to both the prior quarter and the same quarter last year, while operating cash flow fell more sharply, resulting in a lower free cash flow. The free cash flow margin contracted from the prior quarter and from a year ago, indicating weaker cash conversion efficiency.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue and operating cash flow were lower, and free cash flow declined, with the margin also contracting.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the weakened free cash flow.