Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the current quarter, free cash flow and margin weakened compared to both the prior quarter and the same quarter last year, while revenue was stable sequentially. The company's liquidity discussion notes that operating cash flows have historically been a significant source of liquidity and are expected to remain sufficient.
- Operating cash flow as a share of revenue was lower than both the prior quarter and the year-ago quarter, while capital expenditure was slightly lower than the prior quarter and higher than a year ago. This resulted in a lower free cash flow margin.
- Compared to the immediate prior quarter, free cash flow and margin were lower, driven by a significantly lower operating cash flow despite a modest reduction in capital expenditure. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were both lower, leading to a lower margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$312.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$414.5M
Cash generated by operations before capital spending.
CapEx
$102.0M
Capital spending and related asset purchases.
FCF margin
11.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-08-31 | $2.7B | $414.5M | $102.0M | $312.5M | 11.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 63.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | 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 decline
The current quarter's operating cash flow decreased compared to both the prior quarter and the same quarter last year, while revenue remained stable sequentially. This was the primary factor in the reduced free cash flow.
Lower operating cash flow limits the company's ability to generate free cash flow from its current revenue base.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was lower than both the prior quarter and the year-ago quarter, while capital expenditure was slightly lower than the prior quarter and higher than a year ago. This resulted in a lower free cash flow margin.
Compared to the immediate prior quarter, free cash flow and margin were lower, driven by a significantly lower operating cash flow despite a modest reduction in capital expenditure. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were both lower, leading to a lower margin.
Monitor the trend in operating cash flow, as it has declined relative to both comparable periods.