Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned markedly higher from the year-ago quarter, as operating cash flow increased and capital expenditure decreased. Sequentially, free cash flow was lower, reflecting a decline in operating cash flow and a mixed margin.
- From revenue to operating cash flow, then to free cash flow after capital expenditure, the conversion rate produced a margin that was higher than the same quarter last year but lower than the prior quarter.
- Compared with the immediately preceding quarter, revenue was lower and operating cash flow declined, leading to lower free cash flow and margin. Compared with the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and the margin improved substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$384.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$101.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$190.6M
Cash generated by operations before capital spending.
CapEx
$89.4M
Capital spending and related asset purchases.
FCF margin
10.5%
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 |
|---|---|---|---|---|---|
| 2024-04-30 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 97.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.4B | 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 improvement
Operating cash flow increased from the year-ago quarter while capital expenditure decreased, mathematically lifting free cash flow. Sequentially, operating cash flow declined, partially offset by lower capital expenditure.
The shift in operating cash flow relative to capital expenditure was the strongest observable factor shaping free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
From revenue to operating cash flow, then to free cash flow after capital expenditure, the conversion rate produced a margin that was higher than the same quarter last year but lower than the prior quarter.
Compared with the immediately preceding quarter, revenue was lower and operating cash flow declined, leading to lower free cash flow and margin. Compared with the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and the margin improved substantially.
Monitor the relationship between capital expenditure and operating cash flow, as it varied notably across the three periods.