Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both increased compared to the prior quarter and the same quarter last year. The free cash flow margin improved versus the year-ago quarter but declined from the preceding quarter.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin was lower than the preceding quarter's margin but higher than the year-ago quarter's margin, indicating a mixed conversion efficiency relative to revenue.
- Compared to the preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$514.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$559.5M
Cash generated by operations before capital spending.
CapEx
$45.2M
Capital spending and related asset purchases.
FCF margin
38.0%
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 | $818.5M | $393.5M | $33.7M | $359.9M | 44.0% |
| 2023-01-31 | $1.4B | $114.8M | $43.5M | $71.3M | 5.2% |
| 2023-04-30 | $1.3B | $702.9M | $47.9M | $655.1M | 51.9% |
| 2023-07-31 | $1.4B | $559.5M | $45.2M | $514.4M | 38.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 153.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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.
Operating Cash Flow Weakening Sequentially
Operating cash flow decreased from the prior quarter even as revenue increased, leading to a lower free cash flow margin. This is the strongest observable driver of the quarter's mixed cash conversion performance.
The sequential decline in operating cash flow reduced free cash flow and margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin was lower than the preceding quarter's margin but higher than the year-ago quarter's margin, indicating a mixed conversion efficiency relative to revenue.
Compared to the preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the relationship between operating cash flow and revenue, as operating cash flow declined sequentially despite higher revenue.