Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved year over year but weakened sequentially, driven by higher revenue and operating cash flow compared to the prior year. The sequential decline in free cash flow margin reflects a larger drop in operating cash flow relative to the revenue increase.
- Revenue rose from both the prior quarter and the year-ago quarter, while operating cash flow increased year over year but decreased sequentially. Capital expenditure was lower than both comparison periods, contributing to free cash flow that was higher than a year ago but lower than the prior quarter.
- Compared to the prior quarter, free cash flow and free cash flow margin both weakened, as operating cash flow declined more sharply than the modest revenue gain. Versus the same quarter last year, free cash flow and margin improved, supported by higher revenue and operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$109.3M
Capital spending and related asset purchases.
FCF margin
39.8%
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 |
|---|---|---|---|---|---|
| 2025-05-03 | $2.6B | $819.5M | $90.3M | $729.2M | 27.6% |
| 2025-08-02 | $2.9B | $1.2B | $79.2M | $1.1B | 37.7% |
| 2025-11-01 | $3.1B | $1.7B | $215.2M | $1.5B | 48.3% |
| 2026-01-31 | $3.2B | $1.4B | $109.3M | $1.3B | 39.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 151.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.2B | 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
Revenue increased compared to both the prior quarter and the year-ago quarter, providing a larger base for cash generation. This was the strongest observable driver of the year-over-year improvement in free cash flow.
Higher revenue supported a year-over-year increase in free cash flow despite a lower operating cash flow conversion rate.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from both the prior quarter and the year-ago quarter, while operating cash flow increased year over year but decreased sequentially. Capital expenditure was lower than both comparison periods, contributing to free cash flow that was higher than a year ago but lower than the prior quarter.
Compared to the prior quarter, free cash flow and free cash flow margin both weakened, as operating cash flow declined more sharply than the modest revenue gain. Versus the same quarter last year, free cash flow and margin improved, supported by higher revenue and operating cash flow.
Monitor the trajectory of operating cash flow, which declined sequentially despite higher revenue, as this could signal changes in cash conversion efficiency.