Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to a year earlier, but free cash flow turned negative as operating cash flow weakened sharply. The sequential comparison shows a significant decline from the prior quarter's strong free cash flow, reflecting the seasonal pattern of the business.
- Operating cash flow was low relative to revenue, resulting in a negative free cash flow margin after capital expenditure. The conversion from revenue to free cash flow was weaker than both the prior quarter and the same quarter last year.
- Compared to the immediately preceding quarter, revenue was lower and operating cash flow, free cash flow, and free cash flow margin all declined substantially. Versus the same quarter one year earlier, revenue was stable, but operating cash flow and free cash flow were lower, and free cash flow margin turned negative from near zero.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$132.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$34.0M
Cash generated by operations before capital spending.
CapEx
$166.0M
Capital spending and related asset purchases.
FCF margin
-1.5%
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 |
|---|---|---|---|---|---|
| 2024-08-03 | $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% |
| 2025-05-03 | $8.8B | $34.0M | $166.0M | -$132.0M | -1.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -65.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.0M | 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 substantially lower than both the prior quarter and the year-ago quarter, driving the negative free cash flow. The filing notes that cash decreased primarily due to timing and volume of inventory purchases and payments, dividend payments, capital expenditures, and share repurchases, partially offset by positive cash flows from operations driven by earnings.
The weakened operating cash flow was the strongest observable factor turning free cash flow negative this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was low relative to revenue, resulting in a negative free cash flow margin after capital expenditure. The conversion from revenue to free cash flow was weaker than both the prior quarter and the same quarter last year.
Compared to the immediately preceding quarter, revenue was lower and operating cash flow, free cash flow, and free cash flow margin all declined substantially. Versus the same quarter one year earlier, revenue was stable, but operating cash flow and free cash flow were lower, and free cash flow margin turned negative from near zero.
Monitor the level of capital expenditure relative to operating cash flow, as the current quarter's capital outlay exceeded operating cash generation.