Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Operating cash flow increased from the prior quarter, leading to higher free cash flow and an improved margin, though the margin was lower than a year ago.
- Revenue remained stable sequentially, while operating cash flow rose, resulting in a higher free cash flow margin. Capital expenditure was lower than both prior periods, further supporting free cash flow.
- Compared to the prior quarter, free cash flow and margin improved due to higher operating cash flow and lower capital spending. Versus the same quarter last year, revenue was higher but operating cash flow was nearly unchanged, leading to a lower free cash flow margin.
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
$530.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$621.5M
Cash generated by operations before capital spending.
CapEx
$90.9M
Capital spending and related asset purchases.
FCF margin
18.7%
The share of revenue converted into free cash flow.
TTM FCF yield
2.4%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-05-31 | $2.7B | $640.3M | $114.6M | $525.7M | 19.7% |
| 2025-08-31 | $2.7B | $414.5M | $102.0M | $312.5M | 11.5% |
| 2025-11-30 | $2.8B | $531.2M | $106.3M | $425.0M | 15.2% |
| 2026-02-28 | $2.8B | $621.5M | $90.9M | $530.6M | 18.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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.
Operating cash flow improvement
Operating cash flow increased from the previous quarter while revenue held steady, and capital expenditure declined, resulting in higher free cash flow.
This improvement drove the free cash flow margin higher than the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable sequentially, while operating cash flow rose, resulting in a higher free cash flow margin. Capital expenditure was lower than both prior periods, further supporting free cash flow.
Compared to the prior quarter, free cash flow and margin improved due to higher operating cash flow and lower capital spending. Versus the same quarter last year, revenue was higher but operating cash flow was nearly unchanged, leading to a lower free cash flow margin.
The trajectory of operating cash flow relative to revenue, which was stable year over year despite revenue growth, is a key item to monitor.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $73.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.4% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 42.4x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.