Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow improved sequentially due to lower capital expenditure, though operating cash flow was lower than the prior quarter and year ago. The free cash flow margin strengthened compared to the preceding quarter but weakened relative to the same quarter last year.
- Revenue was higher than both prior comparisons, while operating cash flow was lower; however, a significant reduction in capital expenditure led to improved free cash flow and margin relative to the prior quarter.
- Compared to the preceding quarter, free cash flow and margin improved, driven by lower capital spending. Versus the year-ago quarter, revenue was higher but operating cash flow was lower, resulting in lower free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$122.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$36.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$111.0M
Cash generated by operations before capital spending.
CapEx
$74.1M
Capital spending and related asset purchases.
FCF margin
3.9%
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 | $930.2M | $142.5M | $90.9M | $51.6M | 5.5% |
| 2023-10-31 | $927.1M | $174.2M | $145.0M | $29.2M | 3.1% |
| 2024-01-31 | $931.6M | $122.7M | $118.1M | $4.6M | 0.5% |
| 2024-04-30 | $942.6M | $111.0M | $74.1M | $36.9M | 3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 41.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Reduction
Capital expenditure fell sharply from the prior quarter, becoming the primary factor behind the sequential free cash flow improvement.
The lower capital spending directly boosted free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both prior comparisons, while operating cash flow was lower; however, a significant reduction in capital expenditure led to improved free cash flow and margin relative to the prior quarter.
Compared to the preceding quarter, free cash flow and margin improved, driven by lower capital spending. Versus the year-ago quarter, revenue was higher but operating cash flow was lower, resulting in lower free cash flow and margin.
Monitor whether the lower capital expenditure level persists in future quarters.