Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined from the prior quarter as revenue and operating cash flow decreased while capital expenditure rose. Versus the same quarter last year, operating cash flow improved but higher capital spending resulted in a slightly lower free cash flow margin.
- Revenue was stable year over year, but operating cash flow increased, indicating improved cash generation from operations. However, capital expenditure was significantly higher, reducing free cash flow and margin compared to both the prior quarter and the year-ago period.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all were lower. Capital expenditure was higher. Versus the same quarter one year earlier, revenue was unchanged, operating cash flow was higher, but capital expenditure increased more, leading to a lower free cash flow and a slightly weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$667.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$75.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$259.5M
Cash generated by operations before capital spending.
CapEx
$183.7M
Capital spending and related asset purchases.
FCF margin
1.9%
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 |
|---|---|---|---|---|---|
| 2025-04-30 | $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% |
| 2026-01-31 | $3.9B | $259.5M | $183.7M | $75.8M | 1.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 58.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | 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 improvement
Operating cash flow rose compared to the same quarter last year, reflecting stronger cash conversion from revenue. This improvement was partially offset by a higher capital expenditure outlay.
The increase in operating cash flow supports the company's liquidity position, but the elevated capital spending reduced free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable year over year, but operating cash flow increased, indicating improved cash generation from operations. However, capital expenditure was significantly higher, reducing free cash flow and margin compared to both the prior quarter and the year-ago period.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all were lower. Capital expenditure was higher. Versus the same quarter one year earlier, revenue was unchanged, operating cash flow was higher, but capital expenditure increased more, leading to a lower free cash flow and a slightly weakened margin.
Capital expenditure levels, which rose compared to both prior periods, should be monitored for their effect on free cash flow generation.