Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from a negative figure in the same quarter one year earlier, while the margin also improved. Compared to the preceding quarter, free cash flow was stable and the margin was slightly higher.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow improved modestly from the prior quarter but was substantially lower than the year-ago quarter. Capital expenditure was slightly higher than the prior quarter but sharply lower than the year-ago period. As a result, free cash flow remained stable versus the prior quarter and moved from negative to positive year-over-year, with the margin improving accordingly.
- Compared to the preceding quarter, free cash flow was essentially stable and the margin was slightly higher. Compared to the same quarter last year, free cash flow improved significantly from a negative position, and the margin turned positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$318.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$925.0M
Cash generated by operations before capital spending.
CapEx
$607.0M
Capital spending and related asset purchases.
FCF margin
5.5%
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 |
|---|---|---|---|---|---|
| 2024-05-31 | $5.8B | $2.0B | $1.3B | $720.0M | 12.5% |
| 2024-08-31 | $7.9B | $1.2B | $577.0M | $628.0M | 8.0% |
| 2024-11-30 | $5.9B | $911.0M | $592.0M | $319.0M | 5.4% |
| 2025-02-28 | $5.8B | $925.0M | $607.0M | $318.0M | 5.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -407.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$26.9B | 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 reduction
Capital expenditure in the current quarter was much lower than in the same quarter one year earlier, while revenue was higher.
This reduction was the primary observable factor enabling free cash flow to turn positive.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow improved modestly from the prior quarter but was substantially lower than the year-ago quarter. Capital expenditure was slightly higher than the prior quarter but sharply lower than the year-ago period. As a result, free cash flow remained stable versus the prior quarter and moved from negative to positive year-over-year, with the margin improving accordingly.
Compared to the preceding quarter, free cash flow was essentially stable and the margin was slightly higher. Compared to the same quarter last year, free cash flow improved significantly from a negative position, and the margin turned positive.
The trend in operating cash flow, which declined year-over-year despite higher revenue, is a key metric to monitor.