Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was stable year over year, while the free cash flow margin weakened slightly. Operating cash flow improved sequentially, driving a significant increase in free cash flow and margin compared to the prior quarter.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow improved markedly from the preceding quarter, and capital expenditure increased relative to both comparison periods. The resulting free cash flow was unchanged from the year-ago quarter and substantially higher than the prior quarter, with the free cash flow margin improving sequentially but declining year over year.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow despite higher capital expenditure. Versus the same quarter one year earlier, free cash flow was stable while the margin was lower, as operating cash flow growth was offset by a larger increase in capital expenditure.
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
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$510.0M
Capital spending and related asset purchases.
FCF margin
14.9%
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 |
|---|---|---|---|---|---|
| 2024-07-28 | $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% |
| 2025-04-27 | $7.1B | $1.6B | $510.0M | $1.1B | 14.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 49.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $7.0M | 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 Improvement
Operating cash flow rose substantially from the prior quarter, more than offsetting higher capital expenditure and leading to a significant sequential increase in free cash flow and margin.
This was the strongest observable driver of the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow improved markedly from the preceding quarter, and capital expenditure increased relative to both comparison periods. The resulting free cash flow was unchanged from the year-ago quarter and substantially higher than the prior quarter, with the free cash flow margin improving sequentially but declining year over year.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow despite higher capital expenditure. Versus the same quarter one year earlier, free cash flow was stable while the margin was lower, as operating cash flow growth was offset by a larger increase in capital expenditure.
Monitor the trend in capital expenditure, which increased relative to both the prior quarter and the year-ago quarter, as it directly impacts free cash flow conversion.