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 the prior quarter but weakened relative to the year-ago period.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, supporting a higher free cash flow margin than the prior quarter. Capital expenditure was higher than both comparison periods, partially offsetting the cash conversion improvement.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, free cash flow was higher, but the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$721.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$207.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$398.5M
Cash generated by operations before capital spending.
CapEx
$191.1M
Capital spending and related asset purchases.
FCF margin
4.5%
The share of revenue converted into free cash flow.
TTM FCF yield
2.3%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-07-31 | $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% |
| 2026-04-30 | $4.6B | $398.5M | $191.1M | $207.4M | 4.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 127.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.8B | 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 higher than both the prior quarter and the year-ago quarter, and the increase from the prior quarter was proportionally larger than the increase in revenue. This was the strongest observable driver of free cash flow improvement.
Higher operating cash flow directly supported a higher free cash flow compared to both the prior quarter and the year-ago quarter.
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 prior quarter and the year-ago quarter, supporting a higher free cash flow margin than the prior quarter. Capital expenditure was higher than both comparison periods, partially offsetting the cash conversion improvement.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, free cash flow was higher, but the free cash flow margin was lower.
Monitor whether the free cash flow margin can sustain its improvement relative to the prior quarter, given that capital expenditure increased compared to both the prior quarter and the year-ago quarter.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $31.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 45.9x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.