Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sharply versus both the prior quarter and the same quarter last year, driven by a significant increase in operating cash flow. Revenue was stable sequentially and higher year-over-year, while capital expenditure remained minimal.
- Operating cash flow converted into free cash flow with minimal capital expenditure, resulting in a free cash flow margin that was materially higher than the prior quarter and the year-ago quarter. Revenue was unchanged sequentially and higher year-over-year, while operating cash flow rose substantially in both comparisons.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially higher, and the free cash flow margin improved markedly. Versus the same quarter one year earlier, all cash flow metrics were higher, with the free cash flow margin showing a clear improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$678.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$692.0M
Cash generated by operations before capital spending.
CapEx
$14.0M
Capital spending and related asset purchases.
FCF margin
41.4%
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 |
|---|---|---|---|---|---|
| 2024-04-30 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 223.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$701.0M | 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 Surge
Operating cash flow rose sharply from both the prior quarter and the year-ago quarter, while revenue was stable sequentially and higher year-over-year. This was the strongest observable driver of the free cash flow improvement.
The increase in operating cash flow directly lifted free cash flow and the free cash flow margin to levels well above recent comparisons.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted into free cash flow with minimal capital expenditure, resulting in a free cash flow margin that was materially higher than the prior quarter and the year-ago quarter. Revenue was unchanged sequentially and higher year-over-year, while operating cash flow rose substantially in both comparisons.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially higher, and the free cash flow margin improved markedly. Versus the same quarter one year earlier, all cash flow metrics were higher, with the free cash flow margin showing a clear improvement.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.