Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow improved from the year-ago period but declined from the preceding quarter, while free cash flow margin followed a similar pattern.
- Revenue was higher, but operating cash flow decreased sequentially, leading to a lower free cash flow margin than the prior quarter. Compared to the same quarter last year, operating cash flow and free cash flow were both higher, resulting in an improved margin.
- Sequentially, revenue was higher, but operating cash flow, capital expenditure, free cash flow, and margin all were lower. Relative to the same quarter one year earlier, all metrics were higher: revenue, operating cash flow, capital expenditure, free cash flow, and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$569.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$96.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$182.8M
Cash generated by operations before capital spending.
CapEx
$86.4M
Capital spending and related asset purchases.
FCF margin
8.9%
The share of revenue converted into free cash flow.
TTM FCF yield
4.3%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $182.8M | Cash generated by operations before capital spending. |
| Capital expenditures | $86.4M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $96.4M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-04-30 | $829.8M | $131.8M | $43.4M | $88.4M | 10.7% |
| 2022-07-31 | $843.4M | $263.9M | $46.6M | $217.3M | 25.8% |
| 2022-10-31 | $848.1M | $130.7M | $94.9M | $35.8M | 4.2% |
| 2023-01-31 | $858.5M | $166.6M | $83.0M | $83.6M | 9.7% |
| 2023-04-30 | $877.4M | $124.2M | $73.6M | $50.6M | 5.8% |
| 2023-07-31 | $930.2M | $142.5M | $90.9M | $51.6M | 5.5% |
| 2023-10-31 | $927.1M | $174.2M | $145.0M | $29.2M | 3.1% |
| 2024-01-31 | $931.6M | $122.7M | $118.1M | $4.6M | 0.5% |
| 2024-04-30 | $942.6M | $111.0M | $74.1M | $36.9M | 3.9% |
| 2024-07-31 | $1.0B | $207.5M | $89.0M | $118.5M | 11.8% |
| 2024-10-31 | $1.0B | $268.1M | $140.0M | $128.1M | 12.6% |
| 2025-01-31 | $964.7M | $190.6M | $89.4M | $101.2M | 10.5% |
| 2025-04-30 | $1.0B | $96.2M | $78.1M | $18.1M | 1.8% |
| 2025-07-31 | $1.1B | $261.4M | $96.9M | $164.5M | 15.5% |
| 2025-10-31 | $1.1B | $247.9M | $98.0M | $149.9M | 14.1% |
| 2026-01-31 | $1.0B | $260.9M | $102.2M | $158.7M | 15.5% |
| 2026-04-30 | $1.1B | $182.8M | $86.4M | $96.4M | 8.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -123.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash flow improvement
Free cash flow and its margin were higher than the same quarter one year ago, supported by a larger increase in operating cash flow relative to capital expenditure.
This strengthened the company's cash generation compared to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, but operating cash flow decreased sequentially, leading to a lower free cash flow margin than the prior quarter. Compared to the same quarter last year, operating cash flow and free cash flow were both higher, resulting in an improved margin.
Sequentially, revenue was higher, but operating cash flow, capital expenditure, free cash flow, and margin all were lower. Relative to the same quarter one year earlier, all metrics were higher: revenue, operating cash flow, capital expenditure, free cash flow, and margin.
Monitor the trend in operating cash flow, as it declined sequentially despite higher revenue.
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 | $13.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 27.5x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |