Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved compared to both the prior quarter and the same quarter last year. Operating cash flow was higher year-over-year but lower than the prior quarter, leading to a similar pattern in free cash flow.
- Operating cash flow as a percentage of revenue was lower than the prior quarter but higher than the same quarter last year, reflecting shifts in cash collection timing associated with the ongoing transition to annual billings for multi-year contracts, as noted in the filing.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin declined. Versus the same quarter one year earlier, free cash flow and free cash flow margin improved substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$451.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$460.0M
Cash generated by operations before capital spending.
CapEx
$9.0M
Capital spending and related asset purchases.
FCF margin
25.6%
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 |
|---|---|---|---|---|---|
| 2024-10-31 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$497.0M | 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 free cash flow margin improvement
Free cash flow margin increased from the same quarter last year, supported by higher revenue and operating cash flow. The improvement in cash conversion relative to the prior year quarter is the most notable observable change.
The higher free cash flow margin indicates a stronger relationship between revenue and free cash flow compared to the same period last year.
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 prior quarter but higher than the same quarter last year, reflecting shifts in cash collection timing associated with the ongoing transition to annual billings for multi-year contracts, as noted in the filing.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin declined. Versus the same quarter one year earlier, free cash flow and free cash flow margin improved substantially.
Monitor the continuing transition to annual billings for multi-year contracts, as it may affect the timing of cash collections and operating cash flow in future quarters.