Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved from both the prior quarter and the year-ago quarter, while free cash flow was lower in both comparisons. The free cash flow margin weakened versus the immediately preceding quarter and the same quarter one year earlier.
- Operating cash flow increased from the prior quarter but decreased from the year-ago quarter. Capital expenditure was higher than the prior quarter and lower than the year-ago quarter, resulting in free cash flow that rose sequentially but fell year over year.
- Compared to the immediately preceding quarter, revenue was higher and free cash flow was higher, but the free cash flow margin was lower. Compared to the same quarter one year earlier, revenue was higher while free cash flow and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$376.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$414.1M
Cash generated by operations before capital spending.
CapEx
$37.2M
Capital spending and related asset purchases.
FCF margin
19.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-04-30 | $1.7B | $432.1M | $31.2M | $400.9M | 23.3% |
| 2023-07-31 | $2.0B | $414.1M | $37.2M | $376.9M | 19.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 165.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$856.2M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year free cash flow decline
Free cash flow and free cash flow margin were lower than the same quarter a year ago, driven primarily by a lower operating cash flow despite higher revenue. Capital expenditure was slightly lower year over year.
This quarter's cash generation efficiency weakened compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased from the prior quarter but decreased from the year-ago quarter. Capital expenditure was higher than the prior quarter and lower than the year-ago quarter, resulting in free cash flow that rose sequentially but fell year over year.
Compared to the immediately preceding quarter, revenue was higher and free cash flow was higher, but the free cash flow margin was lower. Compared to the same quarter one year earlier, revenue was higher while free cash flow and free cash flow margin were lower.
The relationship between operating cash flow and revenue should be monitored, as operating cash flow declined year over year despite revenue growth.