Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter but lower than the same quarter last year. Free cash flow margin weakened sequentially but was roughly in line with the year-ago level.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin, calculated as free cash flow divided by revenue, was lower than the previous quarter but similar to the year-ago quarter.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, while capital expenditure was higher. Compared to the same quarter last year, revenue was lower, operating cash flow was lower, capital expenditure was lower, and free cash flow was lower.
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
$281.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$328.0M
Cash generated by operations before capital spending.
CapEx
$47.0M
Capital spending and related asset purchases.
FCF margin
22.3%
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 |
|---|---|---|---|---|---|
| 2023-04-30 | $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% |
| 2024-01-31 | $1.3B | $328.0M | $47.0M | $281.0M | 22.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 163.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$72.0M | 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 Decline
Operating cash flow was lower than both the prior quarter and the same quarter last year, despite revenue being stable sequentially. The filing notes that net cash provided by operating activities decreased compared to the same period last year, partly due to a decrease in net income.
The lower operating cash flow directly reduced free cash flow relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin, calculated as free cash flow divided by revenue, was lower than the previous quarter but similar to the year-ago quarter.
Compared to the prior quarter, operating cash flow and free cash flow were lower, while capital expenditure was higher. Compared to the same quarter last year, revenue was lower, operating cash flow was lower, capital expenditure was lower, and free cash flow was lower.
Monitor the trend in operating cash flow, as it decreased both sequentially and year-over-year.