Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin strengthened, reflecting a more efficient cash conversion from revenue.
- Revenue was higher than a year ago but lower than the prior quarter. Operating cash flow increased relative to both periods, while capital expenditure decreased, resulting in a higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, revenue was lower but operating cash flow was higher, leading to a higher free cash flow and a stronger margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with the margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$657.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$164.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$172.4M
Cash generated by operations before capital spending.
CapEx
$7.5M
Capital spending and related asset purchases.
FCF margin
26.0%
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 | $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% |
| 2024-01-31 | $633.2M | $172.4M | $7.5M | $164.8M | 26.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 150.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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 compared to both the prior quarter and the same quarter last year, supported by net income adjusted for non-cash items and favorable changes in operating assets and liabilities.
Higher operating cash flow was the primary factor behind the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than a year ago but lower than the prior quarter. Operating cash flow increased relative to both periods, while capital expenditure decreased, resulting in a higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, revenue was lower but operating cash flow was higher, leading to a higher free cash flow and a stronger margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with the margin also improved.
Monitor changes in operating assets and liabilities, which contributed positively to cash flow this quarter after a negative impact in the prior year period.