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. Operating cash flow and free cash flow improved significantly from the prior quarter and were higher than the year-ago quarter, leading to a stronger free cash flow margin.
- Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that improved from both the prior quarter and the year-ago quarter. The conversion of revenue into free cash flow strengthened notably.
- Compared to the prior quarter, revenue was stable while operating cash flow and free cash flow were much higher, and the free cash flow margin improved. Versus the same quarter last year, revenue was lower but operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$916.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$222.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$255.0M
Cash generated by operations before capital spending.
CapEx
$33.0M
Capital spending and related asset purchases.
FCF margin
18.2%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-04-30 | $1.2B | $110.0M | $36.0M | $74.0M | 6.1% |
| 2024-07-31 | $1.2B | $255.0M | $33.0M | $222.0M | 18.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 57.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$164.0M | 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 Strength
Operating cash flow increased substantially from the prior quarter and was higher than the year-ago quarter, despite lower revenue. This was the strongest observable driver of free cash flow improvement.
Higher operating cash flow directly lifted free cash flow and margin, offsetting the revenue decline from the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that improved from both the prior quarter and the year-ago quarter. The conversion of revenue into free cash flow strengthened notably.
Compared to the prior quarter, revenue was stable while operating cash flow and free cash flow were much higher, and the free cash flow margin improved. Versus the same quarter last year, revenue was lower but operating cash flow, free cash flow, and margin were all higher.
Monitor the trend in operating cash flow, as it drove the improvement in free cash flow and margin this quarter.