Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable quarter over quarter but lower year over year, while operating cash flow held steady. Free cash flow improved relative to both prior periods, supported by a reduced capital expenditure outlay.
- Operating cash flow remained unchanged against both prior periods, while capital expenditure declined, leading to higher free cash flow. The free cash flow margin strengthened compared with the immediate prior quarter and the year-ago quarter.
- Compared with the preceding quarter, revenue was stable and operating cash flow was also stable, while free cash flow and free cash flow margin were higher. Versus the same quarter one year earlier, revenue was lower, operating cash flow was stable, and free cash flow and free cash flow margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$977.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$149.0M
Capital spending and related asset purchases.
FCF margin
40.4%
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 |
|---|---|---|---|---|---|
| 2024-05-04 | $2.2B | $807.9M | $188.2M | $619.7M | 28.7% |
| 2024-08-03 | $2.3B | $855.0M | $153.9M | $701.1M | 30.3% |
| 2024-11-02 | $2.4B | $1.1B | $165.4M | $885.4M | 36.2% |
| 2025-02-01 | $2.4B | $1.1B | $149.0M | $977.8M | 40.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 249.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Reduction Lifts Free Cash Flow
Capital expenditure was lower both sequentially and year over year, while operating cash flow remained unchanged. This reduction directly contributed to a stronger free cash flow and free cash flow margin in the current quarter.
Lower capital spending improved free cash flow without a change in revenue or operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow remained unchanged against both prior periods, while capital expenditure declined, leading to higher free cash flow. The free cash flow margin strengthened compared with the immediate prior quarter and the year-ago quarter.
Compared with the preceding quarter, revenue was stable and operating cash flow was also stable, while free cash flow and free cash flow margin were higher. Versus the same quarter one year earlier, revenue was lower, operating cash flow was stable, and free cash flow and free cash flow margin were higher.
Monitor the trajectory of capital expenditure, as its decline was a key factor in the free cash flow improvement.