Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year, while free cash flow and free cash flow margin declined compared to both periods. Operating cash flow was lower than the preceding quarter and the year-ago quarter, and capital expenditure rose relative to both comparison periods.
- Cash conversion weakened as operating cash flow as a percentage of revenue decreased, and capital expenditure increased, resulting in a lower free cash flow margin compared to both the prior quarter and the same quarter last year.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$273.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$326.1M
Cash generated by operations before capital spending.
CapEx
$53.1M
Capital spending and related asset purchases.
FCF margin
18.6%
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 | $1.4B | $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% |
| 2023-10-31 | $1.5B | $326.1M | $53.1M | $273.0M | 18.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 78.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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 Decline
Operating cash flow was lower than both the prior quarter and the year-ago quarter, even though revenue was higher in both comparisons. This was the strongest observable driver of the weakened free cash flow.
The decline in operating cash flow reduced free cash flow and free cash flow margin relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as operating cash flow as a percentage of revenue decreased, and capital expenditure increased, resulting in a lower free cash flow margin compared to both the prior quarter and the same quarter last year.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were also lower.
Monitor the trend in operating cash flow relative to revenue, as it declined despite higher revenue compared to both prior periods.