Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter and the year-ago quarter, while free cash flow improved sequentially due to higher operating cash flow and lower capital expenditure. The free cash flow margin strengthened versus the prior quarter but remained near the year-ago level.
- Operating cash flow as a share of revenue increased compared to the prior quarter, supporting a higher free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, further aiding cash conversion.
- Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, resulting in a stronger free cash flow margin. Versus the year-ago quarter, revenue was lower while operating cash flow and free cash flow were slightly lower, with the margin remaining broadly 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
$339.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$378.0M
Cash generated by operations before capital spending.
CapEx
$39.0M
Capital spending and related asset purchases.
FCF margin
25.9%
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 |
|---|---|---|---|---|---|
| 2023-01-31 | $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% |
| 2023-10-31 | $1.3B | $378.0M | $39.0M | $339.0M | 25.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 150.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $678.0M | 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 Recovery
Operating cash flow increased significantly from the prior quarter, driving the improvement in free cash flow despite lower revenue. This was the strongest observable factor in the quarter's cash generation.
The higher operating cash flow more than offset the revenue decline, leading to a stronger free cash flow margin sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue increased compared to the prior quarter, supporting a higher free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, further aiding cash conversion.
Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, resulting in a stronger free cash flow margin. Versus the year-ago quarter, revenue was lower while operating cash flow and free cash flow were slightly lower, with the margin remaining broadly stable.
Monitor the trend in operating cash flow relative to revenue, as it improved this quarter but declined from the year-ago level.