Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow and margin declined sequentially but improved from the year-ago period, and the filing notes the company's liquidity position remains supported by its cash, equivalents, and marketable securities.
- Revenue growth supported operating cash flow, which was higher than a year ago but lower than the prior quarter. Capital expenditure increased, resulting in free cash flow that was higher year-over-year but lower sequentially, and the free cash flow margin weakened from the prior quarter while improving from the same quarter last year.
- Compared to the prior quarter, revenue was higher, but operating cash flow, free cash flow, and margin were lower, while capital expenditure was higher. Versus the same quarter a year ago, all metrics were higher except capital expenditure, which was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$291.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$372.0M
Cash generated by operations before capital spending.
CapEx
$81.0M
Capital spending and related asset purchases.
FCF margin
14.6%
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 |
|---|---|---|---|---|---|
| 2023-07-31 | $1.8B | $425.0M | $65.0M | $360.0M | 20.1% |
| 2023-10-31 | $1.9B | $451.0M | $60.0M | $391.0M | 21.0% |
| 2024-01-31 | $1.9B | $996.0M | $49.0M | $947.0M | 49.3% |
| 2024-04-30 | $2.0B | $372.0M | $81.0M | $291.0M | 14.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 272.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.2B | 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 decreased significantly from the prior quarter, despite revenue being higher. This decline was the primary factor behind the sequential drop in free cash flow and margin.
The lower operating cash flow constrained free cash flow generation relative to the prior quarter, even as revenue grew.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth supported operating cash flow, which was higher than a year ago but lower than the prior quarter. Capital expenditure increased, resulting in free cash flow that was higher year-over-year but lower sequentially, and the free cash flow margin weakened from the prior quarter while improving from the same quarter last year.
Compared to the prior quarter, revenue was higher, but operating cash flow, free cash flow, and margin were lower, while capital expenditure was higher. Versus the same quarter a year ago, all metrics were higher except capital expenditure, which was also higher.
Monitor the level of capital expenditure, which increased from both the prior quarter and the year-ago quarter.