Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year. Free cash flow margin strengthened versus the year-ago quarter but weakened against the immediately preceding quarter.
- The company converted a higher proportion of revenue into operating cash flow compared to the year-ago quarter, while capital expenditure remained low in relation to both operating cash flow and revenue.
- Compared to the preceding quarter, operating cash flow and free cash flow were lower, and free cash flow margin declined. Compared to the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$26.0M
Capital spending and related asset purchases.
FCF margin
43.0%
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 |
|---|---|---|---|---|---|
| 2024-05-31 | $5.3B | $1.9B | $41.0M | $1.9B | 35.8% |
| 2024-08-30 | $5.4B | $2.0B | $57.0M | $2.0B | 36.3% |
| 2024-11-29 | $5.6B | $2.9B | $48.0M | $2.9B | 51.2% |
| 2025-02-28 | $5.7B | $2.5B | $26.0M | $2.5B | 43.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 135.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $603.0M | 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 Growth
Operating cash flow increased significantly compared to the year-ago quarter, while revenue also rose, supporting a higher free cash flow margin. This was the strongest observable driver.
Sustained operating cash flow generation relative to revenue will be key to maintaining or improving free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a higher proportion of revenue into operating cash flow compared to the year-ago quarter, while capital expenditure remained low in relation to both operating cash flow and revenue.
Compared to the preceding quarter, operating cash flow and free cash flow were lower, and free cash flow margin declined. Compared to the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trajectory of operating cash flow relative to revenue, as it drove the year-over-year improvement but declined sequentially.