Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and higher than a year ago. Free cash flow turned negative, driven by a large operating cash outflow, resulting in a weakened free cash flow margin.
- Revenue remained flat, but operating cash flow shifted from positive to negative, causing free cash flow to also turn negative. Capital expenditure was slightly lower than the prior quarter but slightly lower than a year ago, yet the negative operating cash flow overwhelmed the conversion.
- Compared to the prior quarter, operating cash flow and free cash flow both weakened significantly, and the margin turned negative. Versus the same quarter a year ago, revenue was higher, but operating cash flow and free cash flow were lower, and the margin declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$128.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$87.8M
Cash generated by operations before capital spending.
CapEx
$40.4M
Capital spending and related asset purchases.
FCF margin
-8.5%
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 |
|---|---|---|---|---|---|
| 2023-04-30 | $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% |
| 2024-01-31 | $1.5B | -$87.8M | $40.4M | -$128.2M | -8.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -28.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | 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 Swing
Operating cash flow moved from a positive amount in both the prior quarter and the year-ago quarter to a negative amount this quarter. This shift is the strongest observable driver of the negative free cash flow, as capital expenditure was relatively stable.
The negative operating cash flow directly caused free cash flow to turn negative, despite stable revenue and lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained flat, but operating cash flow shifted from positive to negative, causing free cash flow to also turn negative. Capital expenditure was slightly lower than the prior quarter but slightly lower than a year ago, yet the negative operating cash flow overwhelmed the conversion.
Compared to the prior quarter, operating cash flow and free cash flow both weakened significantly, and the margin turned negative. Versus the same quarter a year ago, revenue was higher, but operating cash flow and free cash flow were lower, and the margin declined.
Monitor whether operating cash flow recovers to positive levels in the next quarter, as the current negative swing is the primary factor behind the free cash flow deficit.