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 the same quarter last year, driven by higher revenue and a stronger free cash flow margin. However, free cash flow decreased from the prior quarter, as operating cash flow declined while capital expenditure remained stable.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure decreased compared to the year-ago quarter and was slightly lower than the prior quarter. Free cash flow and free cash flow margin were lower than the prior quarter but higher than the year-ago quarter.
- Compared to the prior quarter, free cash flow weakened due to a significant decline in operating cash flow, despite stable capital expenditure. Compared to the same quarter last year, free cash flow strengthened, supported by higher revenue and a higher free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$656.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$694.6M
Cash generated by operations before capital spending.
CapEx
$38.3M
Capital spending and related asset purchases.
FCF margin
39.7%
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 |
|---|---|---|---|---|---|
| 2022-04-30 | $1.4B | $389.5M | $38.3M | $351.2M | 25.3% |
| 2022-07-31 | $1.6B | $523.7M | $39.2M | $484.5M | 31.2% |
| 2022-10-31 | $1.6B | $1.2B | $39.6M | $1.2B | 76.6% |
| 2023-01-31 | $1.7B | $694.6M | $38.3M | $656.3M | 39.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 779.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | 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 was higher than both the prior quarter and the year-ago quarter, providing a broader base for cash generation.
Higher revenue contributed to the year-over-year improvement 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.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure decreased compared to the year-ago quarter and was slightly lower than the prior quarter. Free cash flow and free cash flow margin were lower than the prior quarter but higher than the year-ago quarter.
Compared to the prior quarter, free cash flow weakened due to a significant decline in operating cash flow, despite stable capital expenditure. Compared to the same quarter last year, free cash flow strengthened, supported by higher revenue and a higher free cash flow margin.
Monitor the trend in operating cash flow, as it declined from the prior quarter while revenue increased.