Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin rose sequentially, supported by higher operating cash flow and lower capital expenditure. Compared to the same quarter last year, free cash flow was slightly higher, as a decline in operating cash flow was more than offset by a reduction in capital spending.
- Revenue was slightly higher than the prior quarter and the year-ago period. Operating cash flow improved from the prior quarter but was lower than a year ago. Capital expenditure decreased from both comparison periods, resulting in a free cash flow margin that improved sequentially and remained near the prior-year level.
- Compared to the immediately preceding quarter, all key metrics strengthened: revenue, operating cash flow, and free cash flow increased, while capital expenditure decreased. Year-over-year, revenue and free cash flow were higher, but operating cash flow was lower and capital expenditure was significantly reduced.
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
$528.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$800.9M
Cash generated by operations before capital spending.
CapEx
$272.8M
Capital spending and related asset purchases.
FCF margin
5.1%
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 |
|---|---|---|---|---|---|
| 2024-05-03 | $9.9B | $663.8M | $342.0M | $321.8M | 3.2% |
| 2024-08-02 | $10.2B | $988.9M | $353.7M | $635.2M | 6.2% |
| 2024-11-01 | $10.2B | $542.4M | $341.4M | $201.0M | 2.0% |
| 2025-01-31 | $10.3B | $800.9M | $272.8M | $528.1M | 5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 276.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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.
Lower Capital Expenditure
Capital expenditure was lower than both the prior quarter and the year-ago quarter, which helped sustain free cash flow despite a year-over-year decrease in operating cash flow.
This reduction in capital spending was the primary factor enabling free cash flow to remain stable on a year-over-year basis.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter and the year-ago period. Operating cash flow improved from the prior quarter but was lower than a year ago. Capital expenditure decreased from both comparison periods, resulting in a free cash flow margin that improved sequentially and remained near the prior-year level.
Compared to the immediately preceding quarter, all key metrics strengthened: revenue, operating cash flow, and free cash flow increased, while capital expenditure decreased. Year-over-year, revenue and free cash flow were higher, but operating cash flow was lower and capital expenditure was significantly reduced.
Monitor the trajectory of operating cash flow, as it declined compared to the same period last year despite higher revenue.