Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened as free cash flow and margin declined from the prior quarter, despite a year-over-year improvement in both revenue and free cash flow. The increase in capital expenditure was the primary factor in the sequential decline.
- Operating cash flow increased year over year but decreased sequentially, while capital expenditure rose sharply in both comparisons, leading to a free cash flow that was lower than the prior quarter but higher than the same quarter last year. The free cash flow margin narrowed versus both periods.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow and margin decreased. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, but capital expenditure also increased and margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$682.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$176.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$347.1M
Cash generated by operations before capital spending.
CapEx
$171.1M
Capital spending and related asset purchases.
FCF margin
3.9%
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 | $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% |
| 2025-10-31 | $4.5B | $347.1M | $171.1M | $176.0M | 3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 85.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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.
Capital Expenditure Increase
Capital expenditure rose compared to both the prior quarter and the year-ago quarter, outpacing the change in operating cash flow.
The higher capital spending was the strongest observable driver of the sequential decline in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased year over year but decreased sequentially, while capital expenditure rose sharply in both comparisons, leading to a free cash flow that was lower than the prior quarter but higher than the same quarter last year. The free cash flow margin narrowed versus both periods.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow and margin decreased. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, but capital expenditure also increased and margin was slightly lower.
Monitor the trend in capital expenditure relative to operating cash flow, as the elevated spending reduced free cash flow conversion.