Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased significantly from the prior quarter and remained higher than the year-ago level. The free cash flow margin improved markedly compared to the previous quarter and was slightly higher than the same quarter last year.
- Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow rose sharply from the prior quarter and was above the year-ago level. Capital expenditure decreased slightly from the prior quarter and from the year-ago quarter. Free cash flow margin improved dramatically from the prior quarter and was moderately above the year-ago quarter.
- Compared with the immediately preceding quarter, revenue was lower, yet operating cash flow turned markedly higher, driving free cash flow higher and margin substantially higher. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, and free cash flow margin was slightly stronger.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$36.8M
Capital spending and related asset purchases.
FCF margin
79.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-10-31 | $1.9B | $1.5B | $36.8M | $1.5B | 79.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 766.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Elevated Operating Cash Flow
Operating cash flow rose to a substantially higher level than both the prior quarter and the year-ago quarter, even though revenue was lower than the prior quarter. This shift was the strongest observable driver of free cash flow and margin improvement.
Free cash flow margin reached a level materially above the prior quarter and slightly above the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow rose sharply from the prior quarter and was above the year-ago level. Capital expenditure decreased slightly from the prior quarter and from the year-ago quarter. Free cash flow margin improved dramatically from the prior quarter and was moderately above the year-ago quarter.
Compared with the immediately preceding quarter, revenue was lower, yet operating cash flow turned markedly higher, driving free cash flow higher and margin substantially higher. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, and free cash flow margin was slightly stronger.
Monitor whether the higher operating cash flow level can be sustained given the lower revenue this quarter compared to the prior quarter.