Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow was negative, with operating cash flow also negative. The free cash flow margin improved compared to the same quarter last year but weakened significantly from the prior quarter.
- The company generated negative free cash flow as operating cash flow was negative, despite capital expenditure being lower than the prior quarter. The negative free cash flow margin reflects the shortfall in operating cash flow relative to revenue.
- Compared to the prior quarter, both operating cash flow and free cash flow turned from positive to negative, and the margin weakened. Compared to the same quarter one year earlier, operating cash flow and free cash flow improved, and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$890.0M
Cash generated by operations before capital spending.
CapEx
$256.0M
Capital spending and related asset purchases.
FCF margin
-11.9%
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 |
|---|---|---|---|---|---|
| 2025-04-27 | $12.8B | $1.7B | $203.0M | $1.5B | 11.7% |
| 2025-07-27 | $12.0B | $2.9B | $297.0M | $2.6B | 21.6% |
| 2025-11-02 | $12.4B | $4.0B | $508.0M | $3.5B | 28.1% |
| 2026-02-01 | $9.6B | -$890.0M | $256.0M | -$1.1B | -11.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -174.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Turned Negative
Operating cash flow was negative this quarter, compared to positive in the prior quarter, while capital expenditure decreased. This was the strongest observable driver of the change in free cash flow.
This reversal drove the negative free cash flow and margin deterioration versus the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company generated negative free cash flow as operating cash flow was negative, despite capital expenditure being lower than the prior quarter. The negative free cash flow margin reflects the shortfall in operating cash flow relative to revenue.
Compared to the prior quarter, both operating cash flow and free cash flow turned from positive to negative, and the margin weakened. Compared to the same quarter one year earlier, operating cash flow and free cash flow improved, and the margin strengthened.
Monitor the trajectory of operating cash flow, as it shifted from positive to negative versus the prior quarter.