Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased while operating cash flow declined, leading to lower free cash flow. The cash conversion weakened compared to both the prior quarter and the same quarter last year, primarily due to a decrease in operating cash flow.
- Revenue rose, but operating cash flow decreased, resulting in a decline in free cash flow and a lower free cash flow margin relative to the previous quarter and the same quarter a year earlier.
- Compared to the preceding quarter, revenue was higher but operating cash flow and free cash flow were lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow and free cash flow were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
$218.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$277.0M
Cash generated by operations before capital spending.
CapEx
$59.0M
Capital spending and related asset purchases.
FCF margin
12.9%
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 |
|---|---|---|---|---|---|
| 2022-07-31 | $1.5B | $114.4M | n/a | n/a | n/a |
| 2022-10-31 | $1.6B | $408.7M | n/a | n/a | n/a |
| 2023-01-31 | $1.6B | $694.3M | n/a | n/a | n/a |
| 2023-04-30 | $1.7B | $277.0M | $59.0M | $218.0M | 12.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | n/a | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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
Despite revenue growth, operating cash flow decreased substantially from both the prior quarter and the year-ago quarter. This decline drove the reduction in free cash flow and free cash flow margin.
The weakened cash conversion from operations was the primary reason for lower free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose, but operating cash flow decreased, resulting in a decline in free cash flow and a lower free cash flow margin relative to the previous quarter and the same quarter a year earlier.
Compared to the preceding quarter, revenue was higher but operating cash flow and free cash flow were lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow and free cash flow were lower.
Monitor the trajectory of operating cash flow, as its decline was the most notable change versus both comparison periods.