Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus both the prior quarter and the same quarter last year. Free cash flow weakened sharply from the prior quarter but was slightly higher than a year ago.
- Operating cash flow declined significantly from the prior quarter, while capital expenditure was lower, resulting in a free cash flow margin that weakened from the prior quarter but was similar to the year-ago level.
- Compared to the prior quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin weakened. Compared to the same quarter last year, operating cash flow was higher, free cash flow was slightly higher, and the margin was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$196.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$241.0M
Cash generated by operations before capital spending.
CapEx
$45.0M
Capital spending and related asset purchases.
FCF margin
14.2%
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 |
|---|---|---|---|---|---|
| 2022-10-31 | $1.4B | $398.0M | $58.0M | $340.0M | 23.6% |
| 2023-01-31 | $1.4B | $366.0M | $60.0M | $306.0M | 22.2% |
| 2023-04-30 | $1.4B | $423.0M | $53.0M | $370.0M | 26.6% |
| 2023-07-31 | $1.4B | $241.0M | $45.0M | $196.0M | 14.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 68.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Volatility
Operating cash flow was substantially lower than the prior quarter, while revenue was unchanged. This shift drove the decline in free cash flow and margin.
The lower operating cash flow was the primary factor behind the weakened free cash flow generation this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow declined significantly from the prior quarter, while capital expenditure was lower, resulting in a free cash flow margin that weakened from the prior quarter but was similar to the year-ago level.
Compared to the prior quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin weakened. Compared to the same quarter last year, operating cash flow was higher, free cash flow was slightly higher, and the margin was stable.
Monitor the level of operating cash flow, which declined from the prior quarter despite stable revenue.