Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. However, operating cash flow and free cash flow were sharply lower, causing the free cash flow margin to weaken significantly.
- Revenue increased while operating cash flow decreased, resulting in a much lower conversion of revenue into free cash flow. Capital expenditure was slightly lower than the prior quarter but higher than a year ago, further compressing free cash flow.
- Compared to the prior quarter, revenue improved but operating cash flow and free cash flow weakened substantially, with the free cash flow margin dropping from a higher level. Versus the same quarter last year, revenue was higher while operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$544.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$925.0M
Cash generated by operations before capital spending.
CapEx
$381.0M
Capital spending and related asset purchases.
FCF margin
7.6%
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 |
|---|---|---|---|---|---|
| 2024-04-28 | $6.6B | $1.4B | $257.0M | $1.1B | 17.1% |
| 2024-07-28 | $6.8B | $2.4B | $297.0M | $2.1B | 30.8% |
| 2024-10-27 | $7.0B | $2.6B | $407.0M | $2.2B | 30.8% |
| 2025-01-26 | $7.2B | $925.0M | $381.0M | $544.0M | 7.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 45.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $103.0M | 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 Decline
Operating cash flow was significantly lower than both the prior quarter and the same quarter last year, even as revenue increased. The filing notes that the decrease was primarily due to changes in working capital components and non-cash charges.
The lower operating cash flow was the strongest observable driver of the weakened free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow decreased, resulting in a much lower conversion of revenue into free cash flow. Capital expenditure was slightly lower than the prior quarter but higher than a year ago, further compressing free cash flow.
Compared to the prior quarter, revenue improved but operating cash flow and free cash flow weakened substantially, with the free cash flow margin dropping from a higher level. Versus the same quarter last year, revenue was higher while operating cash flow, free cash flow, and margin were all lower.
Monitor the trajectory of operating cash flow, as it declined sharply despite higher revenue.