Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow fell sharply from the previous quarter, causing free cash flow to decline despite a slight revenue increase. Compared to the same quarter last year, both revenue and free cash flow improved, and the free cash flow margin strengthened.
- Revenue rose moderately, but operating cash flow contracted meaningfully, resulting in a lower free cash flow margin than the prior quarter. Capital expenditure decreased slightly, which partially offset the impact of the operating cash flow decline on free cash flow.
- Compared to the immediately preceding quarter, all cash flow metrics weakened, with free cash flow and margin declining substantially. Versus the year-ago quarter, each metric improved, and the free cash flow margin was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$647.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$90.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$121.3M
Cash generated by operations before capital spending.
CapEx
$30.8M
Capital spending and related asset purchases.
FCF margin
14.9%
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 |
|---|---|---|---|---|---|
| 2025-02-28 | $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% |
| 2025-11-30 | $607.6M | $121.3M | $30.8M | $90.4M | 14.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | 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.
Operating Cash Flow Volatility
Operating cash flow decreased significantly from the prior quarter, which drove a corresponding drop in free cash flow even as revenue rose. This shift highlights the variability in cash generation relative to revenue.
The lower operating cash flow in the current quarter reduced the free cash flow margin considerably compared with the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose moderately, but operating cash flow contracted meaningfully, resulting in a lower free cash flow margin than the prior quarter. Capital expenditure decreased slightly, which partially offset the impact of the operating cash flow decline on free cash flow.
Compared to the immediately preceding quarter, all cash flow metrics weakened, with free cash flow and margin declining substantially. Versus the year-ago quarter, each metric improved, and the free cash flow margin was higher.
Monitor the operating cash flow trend given its sharp sequential decline despite higher revenue.