Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative this quarter, worsened sequentially but improved relative to the same period last year. Revenue was stable while operating cash outflows increased.
- Revenue was unchanged from the prior quarter, but operating cash flow turned more negative, leading to a further decline in free cash flow. Capital expenditure was lower than a year ago, which partially offset the cash drain.
- Compared to the preceding quarter, free cash flow and free cash flow margin weakened. Compared to the same quarter one year earlier, both metrics improved as capital expenditure dropped significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$259.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$119.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$109.1M
Cash generated by operations before capital spending.
CapEx
$10.1M
Capital spending and related asset purchases.
FCF margin
-10.2%
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 |
|---|---|---|---|---|---|
| 2022-10-29 | $1.2B | $177.3M | $13.0M | $164.3M | 13.8% |
| 2023-01-28 | $2.2B | $338.2M | $11.6M | $326.6M | 14.7% |
| 2023-04-29 | $1.2B | -$102.7M | $9.1M | -$111.8M | -9.0% |
| 2023-07-29 | $1.2B | -$109.1M | $10.1M | -$119.2M | -10.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 4257.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $860.1M | 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 was lower compared to the prior year quarter, reducing the outflow from investing activities. This was the most observable factor behind the year-over-year improvement in free cash flow.
While lower capital expenditure supported free cash flow, the persistent negative operating cash flow remains a key concern.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, but operating cash flow turned more negative, leading to a further decline in free cash flow. Capital expenditure was lower than a year ago, which partially offset the cash drain.
Compared to the preceding quarter, free cash flow and free cash flow margin weakened. Compared to the same quarter one year earlier, both metrics improved as capital expenditure dropped significantly.
Monitor the continuing decline in cash and marketable securities, reflecting liquidity consumption.