Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion sharply improved from the prior quarter's deficit to a surplus, driven by a significant increase in operating cash flow. Revenue rose, and while capital expenditure was slightly lower, free cash flow and margin both strengthened.
- Revenue was higher quarter over quarter, and operating cash flow turned strongly positive, yielding substantial free cash flow and a solid free cash flow margin.
- Compared with the immediately preceding quarter, free cash flow and margin improved from negative to positive. Versus the same quarter one year earlier, free cash flow and margin were higher, even though revenue was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$178.0M
Capital spending and related asset purchases.
FCF margin
9.7%
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 |
|---|---|---|---|---|---|
| 2024-05-04 | $8.8B | $156.0M | $152.0M | $4.0M | 0.0% |
| 2024-08-03 | $9.3B | $661.0M | $183.0M | $478.0M | 5.1% |
| 2024-11-02 | $9.4B | -$256.0M | $193.0M | -$449.0M | -4.8% |
| 2025-02-01 | $13.9B | $1.5B | $178.0M | $1.4B | 9.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1161.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $424.0M | 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
Operating cash flow shifted from negative in the prior quarter to positive, more than offsetting a modest capital expenditure and delivering free cash flow well above both the prior quarter and the year-ago quarter.
The improvement in operating cash flow directly drove free cash flow and margin to their strongest levels among the three periods presented.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher quarter over quarter, and operating cash flow turned strongly positive, yielding substantial free cash flow and a solid free cash flow margin.
Compared with the immediately preceding quarter, free cash flow and margin improved from negative to positive. Versus the same quarter one year earlier, free cash flow and margin were higher, even though revenue was slightly lower.
Monitor the level of operating cash flow, which was the primary driver of the quarter's free cash flow strength.