Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was robust in the quarter, supported by strong operating cash flow with a stable margin relative to revenue. Compared to the prior quarter, all key cash metrics improved; compared to the same quarter a year ago, revenue and free cash flow were higher, though the margin was weaker.
- Revenue was lower than the prior quarter but higher than the same quarter a year earlier. Operating cash flow and free cash flow were both higher than the previous quarter and the year-ago period, while capital expenditure increased modestly. The free cash flow margin improved from the prior quarter but weakened compared to the year-ago quarter.
- Compared to the preceding quarter, revenue decreased while operating cash flow, free cash flow, and margin all improved. Compared to the same quarter one year earlier, revenue and free cash flow were higher, but the margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.5B
Cash generated by operations before capital spending.
CapEx
$179.0M
Capital spending and related asset purchases.
FCF margin
64.1%
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 |
|---|---|---|---|---|---|
| 2024-07-31 | $9.3B | $892.0M | $137.0M | $755.0M | 8.1% |
| 2024-10-31 | $9.4B | $2.0B | $204.0M | $1.8B | 18.8% |
| 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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 408.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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.
Operating Cash Flow Strength
Operating cash flow was higher than both the prior quarter and the same quarter a year ago. This drove free cash flow higher despite a modest increase in capital expenditure.
The higher operating cash flow directly improved free cash flow and the margin compared to the prior quarter.
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 the same quarter a year earlier. Operating cash flow and free cash flow were both higher than the previous quarter and the year-ago period, while capital expenditure increased modestly. The free cash flow margin improved from the prior quarter but weakened compared to the year-ago quarter.
Compared to the preceding quarter, revenue decreased while operating cash flow, free cash flow, and margin all improved. Compared to the same quarter one year earlier, revenue and free cash flow were higher, but the margin was lower.
Monitor the accounts receivable balance, which the company identifies as a principal source of liquidity, for any changes that could affect cash conversion.