Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin was stable versus the prior quarter but lower than the year-ago period.
- Operating cash flow as a proportion of revenue improved relative to the prior quarter, supporting a higher free cash flow despite increased capital expenditure. The free cash flow margin remained unchanged from the prior quarter.
- Compared to the prior quarter, revenue and operating cash flow were higher, while capital expenditure also increased, resulting in a slightly higher free cash flow and a stable margin. Versus the same quarter last year, revenue was higher but operating cash flow was lower, leading to a lower free cash flow and a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$564.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$967.7M
Cash generated by operations before capital spending.
CapEx
$403.0M
Capital spending and related asset purchases.
FCF margin
5.3%
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 |
|---|---|---|---|---|---|
| 2024-11-01 | $10.2B | $542.4M | $341.4M | $201.0M | 2.0% |
| 2025-01-31 | $10.3B | $800.9M | $272.8M | $528.1M | 5.1% |
| 2025-05-02 | $10.4B | $847.2M | $290.9M | $556.2M | 5.3% |
| 2025-08-01 | $10.7B | $967.7M | $403.0M | $564.7M | 5.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 137.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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.
Revenue Growth
Revenue increased sequentially and year-over-year, providing a larger base for cash generation. Operating cash flow rose from the prior quarter, though it did not keep pace with the year-ago level.
Higher revenue contributed to a sequential increase in free cash flow, but the year-over-year decline in operating cash flow limited margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue improved relative to the prior quarter, supporting a higher free cash flow despite increased capital expenditure. The free cash flow margin remained unchanged from the prior quarter.
Compared to the prior quarter, revenue and operating cash flow were higher, while capital expenditure also increased, resulting in a slightly higher free cash flow and a stable margin. Versus the same quarter last year, revenue was higher but operating cash flow was lower, leading to a lower free cash flow and a weakened margin.
Monitor the trend in operating cash flow relative to revenue, as it declined year-over-year despite higher revenue.