Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved significantly from the prior quarter, driving a strong increase in free cash flow. The free cash flow margin expanded considerably, returning to near year-ago levels.
- Revenue grew from the preceding quarter, and operating cash flow increased at a faster pace, leading to a higher free cash flow. Capital expenditure rose modestly but did not impede overall cash generation.
- Compared to the immediately preceding quarter, free cash flow and margin improved markedly. Versus the same quarter one year earlier, free cash flow was slightly higher while the margin remained relatively stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$576.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$228.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$253.8M
Cash generated by operations before capital spending.
CapEx
$25.2M
Capital spending and related asset purchases.
FCF margin
39.0%
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 |
|---|---|---|---|---|---|
| 2024-08-31 | $562.2M | $163.2M | $26.0M | $137.2M | 24.4% |
| 2024-11-30 | $568.7M | $86.4M | $25.9M | $60.5M | 10.6% |
| 2025-02-28 | $570.7M | $174.0M | $23.7M | $150.2M | 26.3% |
| 2025-05-31 | $585.5M | $253.8M | $25.2M | $228.6M | 39.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 153.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow Growth
The notable growth in operating cash flow relative to the prior quarter was the primary factor behind the free cash flow improvement. Revenue also increased, but the conversion rate accelerated.
The improved cash flow margin indicates more efficient cash conversion from revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew from the preceding quarter, and operating cash flow increased at a faster pace, leading to a higher free cash flow. Capital expenditure rose modestly but did not impede overall cash generation.
Compared to the immediately preceding quarter, free cash flow and margin improved markedly. Versus the same quarter one year earlier, free cash flow was slightly higher while the margin remained relatively stable.
Monitor capital expenditure trends as they have risen sequentially and year over year.