Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved substantially compared to both the prior quarter and the same quarter last year, driven by a sharp increase in operating cash flow. Capital expenditure rose moderately, but the stronger cash generation more than offset the higher spending.
- Revenue was higher than both the prior quarter and the year-ago quarter, while operating cash flow grew even more significantly, leading to a much stronger free cash flow and margin. Capital expenditure increased from both comparison periods, but the improvement in operating cash flow more than compensated.
- Compared to the immediately preceding quarter, free cash flow and margin strengthened markedly, with operating cash flow sharply higher despite a modest increase in capital expenditure. Versus the same quarter one year earlier, free cash flow and margin also improved, as operating cash flow rose while capital expenditure was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$411.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$164.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$261.4M
Cash generated by operations before capital spending.
CapEx
$96.9M
Capital spending and related asset purchases.
FCF margin
15.5%
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 |
|---|---|---|---|---|---|
| 2024-10-31 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 167.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.1% | 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 Surge
Operating cash flow was significantly higher than both the prior quarter and the year-ago quarter, driving the improvement in free cash flow and margin. This was the strongest observable factor in the quarter's cash conversion performance.
The surge in operating cash flow strengthened free cash flow generation and lifted the margin well above prior levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, while operating cash flow grew even more significantly, leading to a much stronger free cash flow and margin. Capital expenditure increased from both comparison periods, but the improvement in operating cash flow more than compensated.
Compared to the immediately preceding quarter, free cash flow and margin strengthened markedly, with operating cash flow sharply higher despite a modest increase in capital expenditure. Versus the same quarter one year earlier, free cash flow and margin also improved, as operating cash flow rose while capital expenditure was slightly higher.
Monitor the level of capital expenditure relative to operating cash flow, as it increased from both prior periods and could pressure future free cash flow if it outpaces cash generation.