Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved from both the prior quarter and the year-ago quarter. Operating cash flow turned negative from a positive level in the prior quarter, which together with capital expenditure led to a deeper free cash flow deficit.
- Revenue grew compared to the prior quarter and the year-ago quarter, yet operating cash flow shifted to a negative value, resulting in a negative free cash flow margin that widened sequentially.
- Revenue was higher than the immediately preceding quarter and lower than the same quarter one year earlier. Operating cash flow weakened significantly versus the prior quarter and was lower than the year-ago quarter. Free cash flow and free cash flow margin were both worse sequentially and compared with the year-ago period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$284.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$179.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$159.4M
Cash generated by operations before capital spending.
CapEx
$19.6M
Capital spending and related asset purchases.
FCF margin
-19.0%
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 |
|---|---|---|---|---|---|
| 2023-10-28 | $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% |
| 2024-07-27 | $942.3M | -$159.4M | $19.6M | -$179.0M | -19.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1257.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$666.6M | 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 Weakness
The most observable shift was the decline in operating cash flow from a positive figure in the prior quarter to a negative figure in this quarter. Revenue rose, but cash conversion deteriorated, producing a negative free cash flow.
Free cash flow turned more negative sequentially despite higher revenue, indicating weaker cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew compared to the prior quarter and the year-ago quarter, yet operating cash flow shifted to a negative value, resulting in a negative free cash flow margin that widened sequentially.
Revenue was higher than the immediately preceding quarter and lower than the same quarter one year earlier. Operating cash flow weakened significantly versus the prior quarter and was lower than the year-ago quarter. Free cash flow and free cash flow margin were both worse sequentially and compared with the year-ago period.
Monitor ability to sustain positive operating cash flow in subsequent quarters given the current quarter's negative outflow.