Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned negative for the current quarter, leading to a negative free cash flow margin. Revenue increased compared to both the prior quarter and the same quarter last year, while capital expenditure rose relative to the prior quarter.
- Revenue increased from both the prior quarter and the year-ago quarter, yet operating cash flow fell sharply to a negative figure, widening the gap between revenue and cash generation. Higher capital expenditure further deepened the negative free cash flow, resulting in a weakened cash conversion margin.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both decreased significantly, and free cash flow margin dropped from positive to negative. Revenue was higher than the year-ago quarter, but free cash flow and margin were lower, reflecting a weaker cash conversion performance.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$181.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$97.0M
Cash generated by operations before capital spending.
CapEx
$84.0M
Capital spending and related asset purchases.
FCF margin
-6.1%
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 |
|---|---|---|---|---|---|
| 2023-01-31 | $3.0B | $284.0M | $55.0M | $229.0M | 7.5% |
| 2023-04-30 | $6.0B | $3.6B | $88.0M | $3.5B | 58.2% |
| 2023-07-31 | $2.7B | $842.0M | $10.0M | $832.0M | 30.7% |
| 2023-10-31 | $3.0B | -$97.0M | $84.0M | -$181.0M | -6.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -75.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.1B | 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 positive in both comparison periods to negative in the current quarter, despite higher revenue. This is the strongest observable driver, as free cash flow was entirely driven by this swing.
Free cash flow turned negative primarily because operating cash flow became negative, with no offset from capital expenditure changes.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter, yet operating cash flow fell sharply to a negative figure, widening the gap between revenue and cash generation. Higher capital expenditure further deepened the negative free cash flow, resulting in a weakened cash conversion margin.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both decreased significantly, and free cash flow margin dropped from positive to negative. Revenue was higher than the year-ago quarter, but free cash flow and margin were lower, reflecting a weaker cash conversion performance.
Monitor the magnitude of negative operating cash flow and whether it reverts to positive in the upcoming quarter.