Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin decreased compared to the prior quarter, but both improved compared to the same quarter last year. The current quarter's free cash flow was supported by higher revenue relative to the year-ago period.
- Revenue was unchanged from the prior quarter and higher than the year-ago quarter. Operating cash flow declined sequentially, while capital expenditure increased, resulting in lower free cash flow and a lower margin relative to the prior quarter. Compared to the year-ago quarter, operating cash flow and free cash flow were both higher, with a higher margin.
- Compared to the prior quarter, free cash flow was lower, driven by a decrease in operating cash flow and an increase in capital expenditure. Relative to the same quarter last year, free cash flow was higher, as both revenue and operating cash flow increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$742.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$153.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$227.6M
Cash generated by operations before capital spending.
CapEx
$73.9M
Capital spending and related asset purchases.
FCF margin
10.8%
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 |
|---|---|---|---|---|---|
| 2025-05-03 | $1.1B | $156.9M | $28.7M | $128.2M | 11.4% |
| 2025-08-02 | $1.2B | $174.3M | $39.8M | $134.6M | 11.0% |
| 2025-11-01 | $1.4B | $371.1M | $45.4M | $325.6M | 24.1% |
| 2026-01-31 | $1.4B | $227.6M | $73.9M | $153.8M | 10.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$412.9M | 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
Revenue was stable relative to the prior quarter, but operating cash flow decreased, causing free cash flow to decline. The sequential weakening in cash conversion was the primary observable factor.
The lower operating cash flow reduced free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter and higher than the year-ago quarter. Operating cash flow declined sequentially, while capital expenditure increased, resulting in lower free cash flow and a lower margin relative to the prior quarter. Compared to the year-ago quarter, operating cash flow and free cash flow were both higher, with a higher margin.
Compared to the prior quarter, free cash flow was lower, driven by a decrease in operating cash flow and an increase in capital expenditure. Relative to the same quarter last year, free cash flow was higher, as both revenue and operating cash flow increased.
Monitor the level of capital expenditure, which increased compared to both the prior quarter and the year-ago quarter.