Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sequentially and year over year. Free cash flow margin improved from the same quarter last year but weakened from the prior quarter.
- Operating cash flow was lower than the prior quarter but slightly higher than the year-ago quarter. Capital expenditure declined compared to both periods, resulting in free cash flow that was lower than the prior quarter but higher than the year-ago quarter, with a mixed margin trend.
- Compared to the immediately preceding quarter, revenue was higher while operating cash flow, free cash flow, and margin were lower. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$582.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$815.7M
Cash generated by operations before capital spending.
CapEx
$233.7M
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 |
|---|---|---|---|---|---|
| 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% |
| 2026-01-30 | $10.9B | $815.7M | $233.7M | $582.0M | 5.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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.
Capital Expenditure Reduction
Capital expenditure in the current quarter was lower than both the prior quarter and the same quarter last year, providing a partial offset to the lower operating cash flow.
The lower capital spending helped free cash flow exceed the year-ago level, but the sequential decline in operating cash flow led to a weaker free cash flow compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but slightly higher than the year-ago quarter. Capital expenditure declined compared to both periods, resulting in free cash flow that was lower than the prior quarter but higher than the year-ago quarter, with a mixed margin trend.
Compared to the immediately preceding quarter, revenue was higher while operating cash flow, free cash flow, and margin were lower. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, and margin improved.
Monitor the effective tax rate and the potential reauthorization of the Work Opportunity Tax Credit, as the filing notes a significant negative impact on the effective tax rate if the program is not renewed.