Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sharply compared to both the prior quarter and the same quarter last year, driven by a significant decline in operating cash flow. Revenue was lower than the previous quarter but higher than the year-ago period.
- Operating cash flow was lower than both the preceding quarter and the year-ago quarter, while capital expenditure remained stable. This resulted in a free cash flow margin that was lower than both comparison periods.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow was lower, and free cash flow margin was lower. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$993.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$175.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$268.0M
Cash generated by operations before capital spending.
CapEx
$93.0M
Capital spending and related asset purchases.
FCF margin
9.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-10-31 | $1.9B | $545.0M | $93.0M | $452.0M | 24.3% |
| 2026-01-31 | $1.8B | $268.0M | $93.0M | $175.0M | 9.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 57.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | 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 compared to both the prior quarter and the year-ago quarter, while capital expenditure remained similar. This drove a lower free cash flow margin.
The lower cash conversion efficiency may pressure free cash flow generation if revenue does not improve.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both the preceding quarter and the year-ago quarter, while capital expenditure remained stable. This resulted in a free cash flow margin that was lower than both comparison periods.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow was lower, and free cash flow margin was lower. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow margin were lower.
Monitor operating cash flow trends, as the current quarter's conversion rate was significantly lower than recent periods.