Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive from a negative prior quarter, driving free cash flow to a positive margin. Revenue was stable sequentially but higher year-over-year, while free cash flow margin improved sharply from the prior quarter but was lower than the same quarter last year.
- Revenue was unchanged sequentially, yet operating cash flow swung from negative to positive, resulting in a free cash flow margin that turned positive. Capital expenditure was slightly lower than both the prior quarter and the year-ago quarter, supporting the cash conversion improvement.
- Compared to the prior quarter, operating cash flow and free cash flow both improved from negative to positive, and the free cash flow margin strengthened. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$438.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$476.6M
Cash generated by operations before capital spending.
CapEx
$38.4M
Capital spending and related asset purchases.
FCF margin
30.1%
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 |
|---|---|---|---|---|---|
| 2023-07-31 | $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% |
| 2024-04-30 | $1.5B | $476.6M | $38.4M | $438.2M | 30.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 150.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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 Recovery
Operating cash flow turned positive this quarter after being negative in the prior quarter, which was the strongest observable driver of the free cash flow improvement. Capital expenditure remained relatively stable, so the swing in operating cash flow was the primary factor.
Free cash flow moved from negative to positive, and the free cash flow margin improved significantly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged sequentially, yet operating cash flow swung from negative to positive, resulting in a free cash flow margin that turned positive. Capital expenditure was slightly lower than both the prior quarter and the year-ago quarter, supporting the cash conversion improvement.
Compared to the prior quarter, operating cash flow and free cash flow both improved from negative to positive, and the free cash flow margin strengthened. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor whether operating cash flow can sustain its positive level given the large swing from the prior quarter.