Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened in the current quarter, driven by lower operating cash flow relative to higher revenue. Capital expenditure was stable sequentially but increased from the year-ago quarter.
- Revenue increased from the prior quarter, but operating cash flow was lower, resulting in a decline in free cash flow and free cash flow margin. Capital expenditure was materially unchanged from the previous quarter.
- Compared to the immediately preceding quarter, free cash flow and margin were both lower, despite higher revenue. Versus the same quarter one year ago, revenue was slightly higher, while operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$491.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$75.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$96.4M
Cash generated by operations before capital spending.
CapEx
$20.6M
Capital spending and related asset purchases.
FCF margin
10.2%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-07-31 | $661.6M | $164.8M | $21.9M | $143.0M | 21.6% |
| 2024-10-31 | $744.5M | $96.4M | $20.6M | $75.8M | 10.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 62.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | 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 weakness
Revenue rose from the prior quarter, yet operating cash flow fell, narrowing free cash flow margin. This divergence is the strongest observable shift in the quarter. The filing notes a decrease in cash from operations compared to the prior year, with changes in operating assets and liabilities cited as a factor. No further cause is provided in the filing context.
The weakened cash conversion efficiency reduced free cash flow despite higher revenue, indicating a less favorable cash generation profile for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, but operating cash flow was lower, resulting in a decline in free cash flow and free cash flow margin. Capital expenditure was materially unchanged from the previous quarter.
Compared to the immediately preceding quarter, free cash flow and margin were both lower, despite higher revenue. Versus the same quarter one year ago, revenue was slightly higher, while operating cash flow, free cash flow, and margin were all lower.
Operating cash flow declined sharply both sequentially and year-over-year, representing the largest observable change among the reported cash flow metrics.