Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved as operating cash flow grew faster than capital expenditure, resulting in higher free cash flow and a stronger margin. Both sequential and year-over-year comparisons show strengthened free cash flow generation.
- Revenue was lower than the prior quarter but higher than a year ago, while operating cash flow increased in both comparisons. Capital expenditure also rose, yet the gap between operating cash flow and capital spending widened, leading to higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow margin improved from a lower level, driven by higher operating cash flow despite a modest increase in capital expenditure. Versus the same quarter one year earlier, free cash flow was substantially higher, with an even larger gain in margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$491.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$158.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$260.9M
Cash generated by operations before capital spending.
CapEx
$102.2M
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 |
|---|---|---|---|---|---|
| 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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.0% | 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 Strength
Operating cash flow increased in both sequential and year-over-year comparisons, outpacing the growth in capital expenditure and supporting a higher free cash flow margin.
The improvement in free cash flow margin was driven primarily by stronger operating cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago, while operating cash flow increased in both comparisons. Capital expenditure also rose, yet the gap between operating cash flow and capital spending widened, leading to higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, free cash flow margin improved from a lower level, driven by higher operating cash flow despite a modest increase in capital expenditure. Versus the same quarter one year earlier, free cash flow was substantially higher, with an even larger gain in margin.
Monitor the trend of capital expenditure relative to operating cash flow, as it rose both sequentially and year-over-year.