Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved versus the same quarter last year. Compared to the prior quarter, free cash flow was lower due to a decrease in revenue and operating cash flow while capital expenditure remained stable.
- Revenue conversion into operating cash flow was lower than the prior quarter but higher than the same quarter one year earlier. Capital expenditure remained relatively unchanged from the prior quarter, resulting in free cash flow that mirrored the change in operating cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower. Relative to the same quarter one year earlier, all three metrics were higher, and free cash flow margin showed improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$876.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$893.0M
Cash generated by operations before capital spending.
CapEx
$17.0M
Capital spending and related asset purchases.
FCF margin
45.3%
The share of revenue converted into free cash flow.
TTM FCF yield
6.3%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $893.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $17.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $876.0M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-04-30 | $1.2B | $434.0M | $12.0M | $422.0M | 36.1% |
| 2022-07-31 | $1.2B | $257.0M | $11.0M | $246.0M | 19.9% |
| 2022-10-31 | $1.3B | $469.0M | $9.0M | $460.0M | 35.9% |
| 2023-01-31 | $1.3B | $911.0M | $8.0M | $903.0M | 68.5% |
| 2023-04-30 | $1.3B | $723.0M | $9.0M | $714.0M | 56.3% |
| 2023-07-31 | $1.3B | $135.0M | $7.0M | $128.0M | 9.5% |
| 2023-10-31 | $1.4B | $18.0M | $5.0M | $13.0M | 0.9% |
| 2024-01-31 | $1.5B | $437.0M | $10.0M | $427.0M | 29.1% |
| 2024-04-30 | $1.4B | $494.0M | $7.0M | $487.0M | 34.4% |
| 2024-07-31 | $1.5B | $212.0M | $9.0M | $203.0M | 13.5% |
| 2024-10-31 | $1.6B | $209.0M | $10.0M | $199.0M | 12.7% |
| 2025-01-31 | $1.6B | $692.0M | $14.0M | $678.0M | 41.4% |
| 2025-04-30 | $1.6B | $564.0M | $8.0M | $556.0M | 34.0% |
| 2025-07-31 | $1.8B | $460.0M | $9.0M | $451.0M | 25.6% |
| 2025-10-31 | $1.9B | $439.0M | $9.0M | $430.0M | 23.2% |
| 2026-01-31 | $2.0B | $989.0M | $17.0M | $972.0M | 49.7% |
| 2026-04-30 | $1.9B | $893.0M | $17.0M | $876.0M | 45.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 178.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $171.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year operating cash flow growth
Operating cash flow was substantially higher than the same quarter one year earlier. This growth was the primary observable driver behind the year-over-year improvement in free cash flow.
This resulted in a higher free cash flow and free cash flow margin compared to the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into operating cash flow was lower than the prior quarter but higher than the same quarter one year earlier. Capital expenditure remained relatively unchanged from the prior quarter, resulting in free cash flow that mirrored the change in operating cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower. Relative to the same quarter one year earlier, all three metrics were higher, and free cash flow margin showed improvement.
Monitor whether the current quarter's lower operating cash flow relative to revenue persists, as it was a key factor in the sequential decline in free cash flow margin.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $43.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 6.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 15.9x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |