Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened sharply compared to both the prior quarter and the same quarter last year, as operating cash flow declined while capital expenditure rose. Revenue was stable sequentially and higher year over year, but the cash conversion rate fell significantly.
- Revenue was unchanged from the prior quarter, but operating cash flow decreased, leading to a lower free cash flow and a reduced free cash flow margin. Compared to one year ago, revenue was higher yet operating cash flow was lower, resulting in a weaker free cash flow margin.
- Sequentially, free cash flow and margin declined considerably, driven by lower operating cash flow despite a slight increase in capital expenditure. Year over year, free cash flow and margin also fell, as the rise in revenue was more than offset by a drop in operating cash flow and higher capital spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$107.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$221.0M
Cash generated by operations before capital spending.
CapEx
$114.0M
Capital spending and related asset purchases.
FCF margin
6.4%
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 |
|---|---|---|---|---|---|
| 2024-07-31 | $1.6B | $452.0M | $92.0M | $360.0M | 22.8% |
| 2024-10-31 | $1.7B | $481.0M | $93.0M | $388.0M | 22.8% |
| 2025-01-31 | $1.7B | $431.0M | $97.0M | $334.0M | 19.9% |
| 2025-04-30 | $1.7B | $221.0M | $114.0M | $107.0M | 6.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 49.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.9B | 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 substantially lower than both the previous quarter and the same quarter last year, despite stable or higher revenue. This decline was the strongest observable driver of the reduced free cash flow.
The company's liquidity commentary in the filing indicates it expects cash generation and financing sources to meet its needs, but the current quarter's cash conversion weakened markedly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, but operating cash flow decreased, leading to a lower free cash flow and a reduced free cash flow margin. Compared to one year ago, revenue was higher yet operating cash flow was lower, resulting in a weaker free cash flow margin.
Sequentially, free cash flow and margin declined considerably, driven by lower operating cash flow despite a slight increase in capital expenditure. Year over year, free cash flow and margin also fell, as the rise in revenue was more than offset by a drop in operating cash flow and higher capital spending.
Monitor whether operating cash flow recovers toward prior levels, as it was the primary factor behind the weakened free cash flow.