Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Ciena's free cash flow turned positive and improved significantly compared to the same quarter last year, driven by higher revenue and operating cash flow. The free cash flow margin strengthened from a negative position a year ago to a positive level this quarter.
- Revenue increased compared to the prior quarter and the same quarter last year, while operating cash flow also rose, leading to higher free cash flow. Capital expenditure was higher than both comparison periods, but free cash flow margin remained stable relative to the prior quarter and improved from a year ago.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, while free cash flow increased slightly and margin was stable. Versus the same quarter one year earlier, all metrics improved significantly, with operating cash flow and free cash flow turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$605.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$134.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$174.3M
Cash generated by operations before capital spending.
CapEx
$39.8M
Capital spending and related asset purchases.
FCF margin
11.0%
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 |
|---|---|---|---|---|---|
| 2024-11-02 | $1.1B | $349.4M | $83.5M | $265.8M | 23.6% |
| 2025-02-01 | $1.1B | $103.7M | $26.9M | $76.8M | 7.2% |
| 2025-05-03 | $1.1B | $156.9M | $28.7M | $128.2M | 11.4% |
| 2025-08-02 | $1.2B | $174.3M | $39.8M | $134.6M | 11.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 267.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$482.1M | 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 same quarter last year, providing a larger base for cash generation. This was the strongest observable driver of the improvement in free cash flow.
Higher revenue contributed to stronger operating cash flow and a positive free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to the prior quarter and the same quarter last year, while operating cash flow also rose, leading to higher free cash flow. Capital expenditure was higher than both comparison periods, but free cash flow margin remained stable relative to the prior quarter and improved from a year ago.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, while free cash flow increased slightly and margin was stable. Versus the same quarter one year earlier, all metrics improved significantly, with operating cash flow and free cash flow turning from negative to positive.
Monitor capital expenditure levels, which increased compared to both the prior quarter and the same quarter last year.