Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved significantly this quarter, driven by a substantial increase in operating cash flow. Both metrics were higher than the prior quarter and the same quarter last year.
- Revenue was slightly higher, while operating cash flow grew at a much faster pace. Capital expenditure decreased modestly, leading to a notably higher free cash flow and an improved free cash flow margin.
- Compared with the prior quarter, all cash flow metrics improved, with free cash flow and margin showing the largest gains. Versus the same quarter a year ago, operating cash flow and free cash flow were higher, while capital expenditure was slightly higher yet the margin still improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$682.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$185.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$211.7M
Cash generated by operations before capital spending.
CapEx
$26.0M
Capital spending and related asset purchases.
FCF margin
30.4%
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 |
|---|---|---|---|---|---|
| 2025-05-31 | $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% |
| 2026-02-28 | $611.0M | $211.7M | $26.0M | $185.7M | 30.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 139.6% | 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
Operating cash flow increased substantially from both the prior quarter and the same quarter last year, outpacing revenue growth and serving as the primary driver of free cash flow improvement.
This strong operating cash flow enabled a higher free cash flow and an expanded free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher, while operating cash flow grew at a much faster pace. Capital expenditure decreased modestly, leading to a notably higher free cash flow and an improved free cash flow margin.
Compared with the prior quarter, all cash flow metrics improved, with free cash flow and margin showing the largest gains. Versus the same quarter a year ago, operating cash flow and free cash flow were higher, while capital expenditure was slightly higher yet the margin still improved.
Monitor the sustainability of the elevated operating cash flow level and any trend in capital expenditure.