Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned from negative to positive versus the same quarter one year earlier, driven by a lower operating cash flow decline relative to the prior year and a decrease in capital expenditure. Compared with the immediately preceding quarter, free cash flow and the free cash flow margin both improved as operating cash flow rose moderately while capital expenditure fell.
- Revenue decreased slightly from the same quarter last year but grew modestly from the preceding quarter. Operating cash flow rose sharply compared with the year-ago quarter and improved marginally from the prior quarter, while capital expenditure declined relative to both periods. The combination yielded a positive free cash flow margin, up from a negative margin a year earlier and higher than the prior quarter.
- Relative to the preceding quarter, free cash flow and free cash flow margin both improved, as operating cash flow increased and capital expenditure decreased. Versus the year-ago quarter, free cash flow turned positive and the margin climbed from negative to positive, with operating cash flow substantially higher despite slightly lower revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$584.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$129.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$160.0M
Cash generated by operations before capital spending.
CapEx
$31.0M
Capital spending and related asset purchases.
FCF margin
14.0%
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 |
|---|---|---|---|---|---|
| 2024-10-31 | $1.1B | $112.0M | $31.0M | $81.0M | 7.4% |
| 2025-01-31 | $1.0B | $317.0M | $45.0M | $272.0M | 26.3% |
| 2025-04-30 | $894.0M | $152.0M | $50.0M | $102.0M | 11.4% |
| 2025-07-31 | $924.0M | $160.0M | $31.0M | $129.0M | 14.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.9B | 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 Strength
Operating cash flow increased sharply from the year-ago quarter and rose slightly from the prior quarter, while capital expenditure decreased by a larger magnitude compared with the year-ago quarter. This combination lifted free cash flow to a positive level and expanded the free cash flow margin.
Free cash flow turned positive and the margin improved versus both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased slightly from the same quarter last year but grew modestly from the preceding quarter. Operating cash flow rose sharply compared with the year-ago quarter and improved marginally from the prior quarter, while capital expenditure declined relative to both periods. The combination yielded a positive free cash flow margin, up from a negative margin a year earlier and higher than the prior quarter.
Relative to the preceding quarter, free cash flow and free cash flow margin both improved, as operating cash flow increased and capital expenditure decreased. Versus the year-ago quarter, free cash flow turned positive and the margin climbed from negative to positive, with operating cash flow substantially higher despite slightly lower revenue.
Monitor the trajectory of operating cash flow relative to revenue, as it has been the primary driver of free cash flow changes despite a slight revenue decrease.