Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved versus both the prior quarter and the year-ago quarter, but free cash flow margin weakened as operating cash flow declined from the prior quarter despite higher revenue. The filing notes that full-year operating cash flow increased from the prior year, while the current quarter's cash conversion was lower.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin, though lower than prior periods, indicates that a meaningful portion of revenue was converted into free cash.
- Revenue was higher than both the prior quarter and the same quarter last year. However, free cash flow was lower than both periods, and the margin weakened compared to both the prior quarter and the year-ago quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$606.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$152.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$163.2M
Cash generated by operations before capital spending.
CapEx
$10.3M
Capital spending and related asset purchases.
FCF margin
21.3%
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 |
|---|---|---|---|---|---|
| 2023-01-31 | $610.5M | $123.3M | $9.3M | $114.0M | 18.7% |
| 2023-04-30 | $650.2M | $164.6M | $6.0M | $158.5M | 24.4% |
| 2023-07-31 | $648.7M | $190.2M | $8.9M | $181.3M | 27.9% |
| 2023-10-31 | $719.3M | $163.2M | $10.3M | $152.9M | 21.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue increased compared to both the preceding quarter and the same quarter one year ago, indicating higher top-line performance.
Despite the revenue increase, free cash flow and margin declined, suggesting that revenue growth did not directly improve cash conversion in this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin, though lower than prior periods, indicates that a meaningful portion of revenue was converted into free cash.
Revenue was higher than both the prior quarter and the same quarter last year. However, free cash flow was lower than both periods, and the margin weakened compared to both the prior quarter and the year-ago quarter.
Monitor operating cash flow trends, as it declined from both the prior quarter and the year-ago quarter despite revenue growth.