Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sequentially but improved year-over-year, driven by a lower capital expenditure compared to the prior year. Operating cash flow declined both sequentially and from the same quarter last year, while revenue remained stable quarter over quarter.
- Revenue was stable compared to the previous quarter, while operating cash flow decreased, leading to a lower free cash flow and margin. Relative to the same quarter last year, higher revenue and lower capital expenditure supported a higher free cash flow despite a decline in operating cash flow.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, as operating cash flow weakened and capital expenditure increased slightly. Versus the same quarter one year earlier, free cash flow and margin were higher, primarily due to a significant reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$433.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$149.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$247.9M
Cash generated by operations before capital spending.
CapEx
$98.0M
Capital spending and related asset purchases.
FCF margin
14.1%
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 |
|---|---|---|---|---|---|
| 2025-01-31 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 177.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.2% | 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.
Lower Capital Expenditure
Capital expenditure in the current quarter was lower than the same quarter last year, partially offsetting the decline in operating cash flow and resulting in higher free cash flow year-over-year.
This reduction in capital expenditure was the primary factor behind the year-over-year improvement in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the previous quarter, while operating cash flow decreased, leading to a lower free cash flow and margin. Relative to the same quarter last year, higher revenue and lower capital expenditure supported a higher free cash flow despite a decline in operating cash flow.
Compared to the immediately preceding quarter, free cash flow and margin were lower, as operating cash flow weakened and capital expenditure increased slightly. Versus the same quarter one year earlier, free cash flow and margin were higher, primarily due to a significant reduction in capital expenditure.
Monitor the trend in operating cash flow, which declined both sequentially and year-over-year.