Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to the prior quarter and the same quarter last year. Operating cash flow strengthened, driving a higher free cash flow margin.
- Operating cash flow increased substantially relative to revenue, resulting in a higher free cash flow margin. Capital expenditures remained stable, and the company maintains substantial liquidity sources as per the filing context.
- Compared to the prior quarter, free cash flow margin improved significantly. Versus the same quarter last year, both revenue and free cash flow were higher, with margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$139.0M
Capital spending and related asset purchases.
FCF margin
21.2%
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 | $10.0B | $4.0B | $154.0M | $3.8B | 38.2% |
| 2025-04-30 | $9.8B | $6.5B | $179.0M | $6.3B | 64.1% |
| 2025-07-31 | $10.2B | $740.0M | $135.0M | $605.0M | 5.9% |
| 2025-10-31 | $10.3B | $2.3B | $139.0M | $2.2B | 21.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | $540.0M | 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 rose significantly compared to the immediately preceding quarter, leading to a higher free cash flow margin.
Further improvements in free cash flow depend on maintaining or increasing operating cash flow levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased substantially relative to revenue, resulting in a higher free cash flow margin. Capital expenditures remained stable, and the company maintains substantial liquidity sources as per the filing context.
Compared to the prior quarter, free cash flow margin improved significantly. Versus the same quarter last year, both revenue and free cash flow were higher, with margin also improved.
Monitor the trend in operating cash flow to see if the improvement is sustained.