Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow rose more than revenue, while capital expenditure declined, resulting in higher free cash flow and an improved free cash flow margin.
- Cash conversion strengthened as higher revenue combined with a greater increase in operating cash flow and lower capital expenditure lifted free cash flow. The free cash flow margin improved compared to both prior periods.
- Sequentially, free cash flow and margin were higher than the preceding quarter. Year-over-year, both metrics also improved from the same quarter one year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$544.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$158.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$164.6M
Cash generated by operations before capital spending.
CapEx
$6.0M
Capital spending and related asset purchases.
FCF margin
24.4%
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 |
|---|---|---|---|---|---|
| 2022-07-31 | $662.1M | $125.2M | $14.6M | $110.6M | 16.7% |
| 2022-10-31 | $683.6M | $173.4M | $12.1M | $161.4M | 23.6% |
| 2023-01-31 | $610.5M | $123.3M | $9.3M | $114.0M | 18.7% |
| 2023-04-30 | $650.2M | $164.6M | $6.0M | $158.5M | 24.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$820.2M | 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 Growth
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter, outpacing the growth in revenue.
This growth was the primary factor behind the higher free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion strengthened as higher revenue combined with a greater increase in operating cash flow and lower capital expenditure lifted free cash flow. The free cash flow margin improved compared to both prior periods.
Sequentially, free cash flow and margin were higher than the preceding quarter. Year-over-year, both metrics also improved from the same quarter one year earlier.
Monitor the impact of the cash outflows related to the CyberOptics acquisition on future free cash flow generation.