Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened versus both periods, reflecting higher cash generation relative to revenue.
- Operating cash flow as a proportion of revenue was higher than both the preceding quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter but slightly higher than the year-ago period. This combination drove free cash flow and its margin higher sequentially and year-over-year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and capital expenditure was lower. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were also higher, while capital expenditure was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$666.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$262.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$372.4M
Cash generated by operations before capital spending.
CapEx
$110.0M
Capital spending and related asset purchases.
FCF margin
5.7%
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 |
|---|---|---|---|---|---|
| 2024-10-31 | $3.9B | $270.7M | $110.7M | $160.0M | 4.1% |
| 2025-01-31 | $3.9B | $204.9M | $114.3M | $90.7M | 2.3% |
| 2025-04-30 | $4.0B | $333.9M | $180.7M | $153.1M | 3.8% |
| 2025-07-31 | $4.6B | $372.4M | $110.0M | $262.4M | 5.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | 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 was the strongest observable driver, increasing from both the prior quarter and the year-ago quarter. This improvement was the primary factor behind the higher free cash flow and margin.
Higher operating cash flow, combined with lower capital expenditure than the prior quarter, resulted in a stronger free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the preceding quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter but slightly higher than the year-ago period. This combination drove free cash flow and its margin higher sequentially and year-over-year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and capital expenditure was lower. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were also higher, while capital expenditure was slightly higher.
Monitor the trend in capital expenditure, which was lower than the prior quarter but higher than the year-ago quarter, as it directly affects free cash flow conversion.