Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year, driven by higher operating cash flow despite lower revenue. However, free cash flow weakened from the prior quarter as operating cash flow declined.
- Revenue was lower than both the prior quarter and the year-ago quarter, yet operating cash flow rose year-over-year, leading to a higher free cash flow margin than a year earlier. Capital expenditure was stable compared to the year-ago quarter and slightly lower than the prior quarter.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. Versus the year-ago quarter, revenue was lower while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$610.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$107.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$132.0M
Cash generated by operations before capital spending.
CapEx
$25.0M
Capital spending and related asset purchases.
FCF margin
10.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-10-31 | $1.0B | $132.0M | $25.0M | $107.0M | 10.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 47.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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.
Year-over-Year Cash Flow Improvement
Operating cash flow was higher than the same quarter last year, while capital expenditure remained similar, resulting in stronger free cash flow and a higher free cash flow margin.
This driver contributed to a free cash flow margin that was higher than the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter, yet operating cash flow rose year-over-year, leading to a higher free cash flow margin than a year earlier. Capital expenditure was stable compared to the year-ago quarter and slightly lower than the prior quarter.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. Versus the year-ago quarter, revenue was lower while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin.
Monitor the trend in operating cash flow, as it declined from the prior quarter despite higher revenue.