Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to the prior quarter and the same quarter last year. Operating cash flow was lower than the prior quarter but higher than a year ago, while capital expenditure decreased from the prior quarter and increased from last year.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure decreased from the prior quarter and increased from a year ago. Free cash flow was higher than both comparison periods, and free cash flow margin improved versus the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue was higher but operating cash flow was lower, leading to a lower free cash flow despite lower capital expenditure. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$736.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$647.0M
Capital spending and related asset purchases.
FCF margin
9.0%
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 |
|---|---|---|---|---|---|
| 2024-11-30 | $5.9B | $911.0M | $592.0M | $319.0M | 5.4% |
| 2025-02-28 | $5.8B | $925.0M | $607.0M | $318.0M | 5.5% |
| 2025-05-31 | $6.3B | $2.4B | $851.0M | $1.5B | 24.4% |
| 2025-08-31 | $8.2B | $1.4B | $647.0M | $736.0M | 9.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 39.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$25.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue was higher than both the prior quarter and the year-ago quarter, providing a stronger base for cash generation. Free cash flow margin improved compared to both periods.
Higher revenue supported a higher free cash flow compared to both the prior quarter and the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure decreased from the prior quarter and increased from a year ago. Free cash flow was higher than both comparison periods, and free cash flow margin improved versus the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue was higher but operating cash flow was lower, leading to a lower free cash flow despite lower capital expenditure. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure also higher.
Monitor the relationship between operating cash flow and revenue, as operating cash flow declined from the prior quarter despite higher revenue.