Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive this quarter, driving free cash flow into positive territory after a negative prior quarter. However, both revenue and free cash flow margin were lower compared to the same quarter last year.
- Revenue was lower sequentially and year over year. Operating cash flow swung from negative to positive, and capital expenditure decreased, resulting in positive free cash flow and a positive margin.
- Compared to the prior quarter, operating cash flow and free cash flow improved markedly from negative to positive. Compared to the same quarter last year, all metrics were lower, with free cash flow margin significantly reduced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$106.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$11.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$19.1M
Cash generated by operations before capital spending.
CapEx
$8.0M
Capital spending and related asset purchases.
FCF margin
1.0%
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 |
|---|---|---|---|---|---|
| 2023-01-28 | $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% |
| 2023-10-28 | $1.1B | $19.1M | $8.0M | $11.1M | 1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -358.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $878.5M | 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 Swing
Operating cash flow shifted from negative in the prior quarter to positive, despite a decline in revenue. This change was the most observable driver behind the positive free cash flow.
The shift allowed the company to generate positive free cash flow after a period of negative cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower sequentially and year over year. Operating cash flow swung from negative to positive, and capital expenditure decreased, resulting in positive free cash flow and a positive margin.
Compared to the prior quarter, operating cash flow and free cash flow improved markedly from negative to positive. Compared to the same quarter last year, all metrics were lower, with free cash flow margin significantly reduced.
Monitor the sustainability of positive operating cash flow given the lower revenue base, while noting the company maintains substantial cash and marketable securities and available borrowing capacity as per the filing.