Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved significantly from the preceding quarter but remained below the level of the same quarter one year earlier. The improvement was driven by a substantial increase in operating cash flow, while capital expenditure was slightly lower than the prior quarter.
- Revenue was stable compared with the prior quarter, while operating cash flow increased sharply, resulting in higher free cash flow and a higher free cash flow margin. Capital expenditure was lower than the prior quarter, which also supported the improvement in cash conversion.
- Compared with the immediately preceding quarter, free cash flow margin improved markedly, driven by higher operating cash flow and slightly lower capital expenditure. Relative to the same quarter one year earlier, free cash flow margin weakened, as operating cash flow was lower and capital expenditure was higher.
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
$259.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$362.0M
Cash generated by operations before capital spending.
CapEx
$103.0M
Capital spending and related asset purchases.
FCF margin
14.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-07-31 | $1.7B | $362.0M | $103.0M | $259.0M | 14.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 77.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.8B | 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 increased substantially from the prior quarter, while revenue remained flat. This was the primary factor behind the improvement in free cash flow and free cash flow margin.
The increase in operating cash flow directly lifted free cash flow and the cash conversion rate relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared with the prior quarter, while operating cash flow increased sharply, resulting in higher free cash flow and a higher free cash flow margin. Capital expenditure was lower than the prior quarter, which also supported the improvement in cash conversion.
Compared with the immediately preceding quarter, free cash flow margin improved markedly, driven by higher operating cash flow and slightly lower capital expenditure. Relative to the same quarter one year earlier, free cash flow margin weakened, as operating cash flow was lower and capital expenditure was higher.
Monitor the trend in capital expenditure, which was higher than the year-ago level but lower than the prior quarter.