Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to a year ago and slightly higher than the prior quarter. Free cash flow and free cash flow margin weakened significantly versus both the prior quarter and the same quarter last year, driven by lower operating cash flow.
- Operating cash flow as a proportion of revenue declined, resulting in a lower free cash flow margin despite capital expenditure being higher than both comparison periods. The conversion from revenue to free cash flow weakened.
- Compared to the prior quarter, revenue was slightly higher but operating cash flow and free cash flow were lower, and capital expenditure increased. Versus the same quarter last year, revenue was essentially unchanged, while operating cash flow and free cash flow were lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$607.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$108.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$122.6M
Cash generated by operations before capital spending.
CapEx
$14.4M
Capital spending and related asset purchases.
FCF margin
16.6%
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 |
|---|---|---|---|---|---|
| 2023-07-31 | $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% |
| 2024-04-30 | $650.6M | $122.6M | $14.4M | $108.2M | 16.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.4B | 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 decreased compared to both the prior quarter and the same quarter last year, while revenue remained relatively stable. This shift reduced the cash conversion efficiency.
The lower operating cash flow directly drove the reduction in free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue declined, resulting in a lower free cash flow margin despite capital expenditure being higher than both comparison periods. The conversion from revenue to free cash flow weakened.
Compared to the prior quarter, revenue was slightly higher but operating cash flow and free cash flow were lower, and capital expenditure increased. Versus the same quarter last year, revenue was essentially unchanged, while operating cash flow and free cash flow were lower, and capital expenditure was higher.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the weakened free cash flow margin.