Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased versus both the prior quarter and the same quarter a year ago, while free cash flow decreased from the prior quarter but improved from the year-ago period. The free cash flow margin narrowed sequentially but widened compared to the same quarter last year.
- Operating cash flow as a percentage of revenue was lower than the preceding quarter but higher than the year-ago quarter. Capital expenditure rose from both comparison periods, yet free cash flow margin followed the same directional pattern as operating cash flow margin.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while capital expenditure was higher. Versus the same quarter one year ago, operating cash flow, free cash flow, and capital expenditure were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$47.0M
Capital spending and related asset purchases.
FCF margin
36.5%
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 |
|---|---|---|---|---|---|
| 2024-08-30 | $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% |
| 2025-05-30 | $5.9B | $2.2B | $47.0M | $2.1B | 36.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | 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.
Revenue growth supporting cash generation
Revenue rose from both the prior quarter and the same quarter last year. The filing notes that the primary source of cash is receipts from revenue, and the observed improvement in operating cash flow on a year-over-year basis aligns with the higher revenue level.
Higher revenue provided a stronger base for cash conversion relative to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was lower than the preceding quarter but higher than the year-ago quarter. Capital expenditure rose from both comparison periods, yet free cash flow margin followed the same directional pattern as operating cash flow margin.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while capital expenditure was higher. Versus the same quarter one year ago, operating cash flow, free cash flow, and capital expenditure were all higher.
Monitor the trajectory of free cash flow margin given its sequential decline from the prior quarter.