Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow increased versus the prior quarter, while capital expenditure also rose, producing slightly higher free cash flow. Compared to the same quarter last year, both operating cash flow and free cash flow were lower.
- Revenue was higher than both the prior quarter and the year-ago quarter. The free cash flow margin slightly weakened versus the prior quarter and was lower than the same quarter a year earlier, reflecting a higher proportion of capital expenditure relative to operating cash flow.
- Compared with the immediately preceding quarter, free cash flow was slightly higher on higher operating cash flow and higher capital expenditure. Compared with the same quarter one year earlier, free cash flow was lower, driven by lower operating cash flow and moderately higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$525.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$640.3M
Cash generated by operations before capital spending.
CapEx
$114.6M
Capital spending and related asset purchases.
FCF margin
19.7%
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 |
|---|---|---|---|---|---|
| 2024-08-31 | $2.5B | $460.4M | $92.9M | $367.4M | 14.7% |
| 2024-11-30 | $2.6B | $444.7M | $101.4M | $343.3M | 13.4% |
| 2025-02-28 | $2.6B | $620.5M | $99.9M | $520.6M | 20.0% |
| 2025-05-31 | $2.7B | $640.3M | $114.6M | $525.7M | 19.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 117.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher Operating Cash Flow Sequentially
Operating cash flow rose from the prior quarter, providing the primary support for the sequential increase in free cash flow. This occurred even as capital expenditure expanded.
The sequential improvement in operating cash flow was the strongest observable factor lifting free cash flow in the current quarter.
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. The free cash flow margin slightly weakened versus the prior quarter and was lower than the same quarter a year earlier, reflecting a higher proportion of capital expenditure relative to operating cash flow.
Compared with the immediately preceding quarter, free cash flow was slightly higher on higher operating cash flow and higher capital expenditure. Compared with the same quarter one year earlier, free cash flow was lower, driven by lower operating cash flow and moderately higher capital expenditure.
Monitor the trajectory of capital expenditure relative to operating cash flow, as its increased proportion weighed on free cash flow conversion.