Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow and free cash flow margin improved significantly compared to both the prior quarter and the same quarter last year, driven by a higher operating cash flow despite slightly lower revenue. Capital expenditure was lower than the year-ago period, further supporting free cash flow.
- The conversion from revenue to free cash flow strengthened as operating cash flow increased relative to revenue, while capital expenditure remained modest.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, as operating cash flow increased more than proportionally. Versus the same quarter one year earlier, free cash flow was higher and free cash flow margin improved, supported by a higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$534.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$272.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$317.0M
Cash generated by operations before capital spending.
CapEx
$45.0M
Capital spending and related asset purchases.
FCF margin
26.3%
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 |
|---|---|---|---|---|---|
| 2024-04-30 | $964.0M | $285.0M | $80.0M | $205.0M | 21.3% |
| 2024-07-31 | $951.0M | $17.0M | $41.0M | -$24.0M | -2.5% |
| 2024-10-31 | $1.1B | $112.0M | $31.0M | $81.0M | 7.4% |
| 2025-01-31 | $1.0B | $317.0M | $45.0M | $272.0M | 26.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Operating Cash Flow
Operating cash flow increased significantly compared to both the prior quarter and the year-ago quarter, even as revenue was slightly lower. This led to a much higher free cash flow margin.
The higher free cash flow provides greater financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion from revenue to free cash flow strengthened as operating cash flow increased relative to revenue, while capital expenditure remained modest.
Compared to the immediately preceding quarter, free cash flow and margin were higher, as operating cash flow increased more than proportionally. Versus the same quarter one year earlier, free cash flow was higher and free cash flow margin improved, supported by a higher operating cash flow and lower capital expenditure.
Monitor the sustainability of operating cash flow levels given the slight decline in revenue.