Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the year-ago quarter, but operating cash flow decreased sharply, leading to a much lower free cash flow and margin. The cash conversion rate weakened considerably.
- Revenue rose, yet operating cash flow fell, causing free cash flow to decline. Capital expenditure was slightly lower than the prior quarter, but the reduction in operating cash flow was the dominant factor.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow was lower, and free cash flow and margin were lower. Versus the same quarter one year earlier, revenue was higher, operating cash flow was lower, and free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$365.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$18.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$96.2M
Cash generated by operations before capital spending.
CapEx
$78.1M
Capital spending and related asset purchases.
FCF margin
1.8%
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 |
|---|---|---|---|---|---|
| 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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 20.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Decline in Operating Cash Flow
Operating cash flow decreased significantly from both the prior quarter and the year-ago quarter, while revenue increased. This was the primary observable factor behind the lower free cash flow.
The lower operating cash flow constrained the company's ability to convert revenue into free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose, yet operating cash flow fell, causing free cash flow to decline. Capital expenditure was slightly lower than the prior quarter, but the reduction in operating cash flow was the dominant factor.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow was lower, and free cash flow and margin were lower. Versus the same quarter one year earlier, revenue was higher, operating cash flow was lower, and free cash flow and margin were lower.
Monitor the trend of operating cash flow in relation to revenue.