Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter, free cash flow margin improved compared to the same quarter last year but decreased sequentially. Operating cash flow was higher year-over-year yet lower than the prior quarter.
- The conversion of revenue into operating cash flow was weaker than the preceding quarter, while capital expenditure rose. Consequently, free cash flow margin narrowed sequentially.
- Compared with the immediately preceding quarter, both operating cash flow and free cash flow declined, and capital expenditure increased. Versus the same quarter one year earlier, all three cash metrics were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$617.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$178.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$212.1M
Cash generated by operations before capital spending.
CapEx
$34.0M
Capital spending and related asset purchases.
FCF margin
29.8%
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 |
|---|---|---|---|---|---|
| 2024-11-30 | $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% |
| 2025-08-31 | $596.9M | $212.1M | $34.0M | $178.1M | 29.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.0B | 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 and cash generation divergence
Revenue increased from both comparison periods, but operating cash flow did not keep pace, especially sequentially. This divergence led to a lower free cash flow margin compared to the prior quarter.
If operating cash flow does not improve in line with revenue, free cash flow margin may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion of revenue into operating cash flow was weaker than the preceding quarter, while capital expenditure rose. Consequently, free cash flow margin narrowed sequentially.
Compared with the immediately preceding quarter, both operating cash flow and free cash flow declined, and capital expenditure increased. Versus the same quarter one year earlier, all three cash metrics were higher.
Monitor the trend in capital expenditure as it increased from both the prior quarter and the year-ago period.