Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply compared with both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital spending. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased relative to both periods, while capital expenditure declined compared with the previous quarter and was slightly lower than the year-ago level. The combination of higher cash generation and reduced investment lifted free cash flow and its margin.
- Compared with the immediately preceding quarter, free cash flow increased and the margin improved, as revenue was slightly lower but operating cash flow rose and capital spending fell. Versus the same quarter one year earlier, every metric improved: revenue, operating cash flow, free cash flow, and margin were all higher, while capital expenditure was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$690.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$313.5M
Capital spending and related asset purchases.
FCF margin
6.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-10-31 | $10.6B | $1.0B | $313.5M | $690.4M | 6.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 244.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | 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 Strength
Operating cash flow rose to a higher level than both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. The improvement occurred even as revenue edged down from the previous quarter.
Higher operating cash flow directly boosted free cash flow and allowed the company to maintain a stronger margin despite stable revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased relative to both periods, while capital expenditure declined compared with the previous quarter and was slightly lower than the year-ago level. The combination of higher cash generation and reduced investment lifted free cash flow and its margin.
Compared with the immediately preceding quarter, free cash flow increased and the margin improved, as revenue was slightly lower but operating cash flow rose and capital spending fell. Versus the same quarter one year earlier, every metric improved: revenue, operating cash flow, free cash flow, and margin were all higher, while capital expenditure was slightly lower.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the current quarter's lower spending contributed to the free cash flow improvement.