Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to the prior quarter but was lower than the same quarter last year. Operating cash flow turned positive and free cash flow improved significantly, resulting in a strong free cash flow margin.
- The company converted a higher level of revenue into operating cash flow, while capital expenditure remained modest, leading to solid free cash flow and a healthy margin.
- Relative to the previous quarter, revenue and operating cash flow increased and free cash flow improved. Compared to the same quarter a year earlier, revenue was lower but operating cash flow shifted from negative to positive, and free cash flow turned positive, resulting in a much stronger margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$129.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$158.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$162.3M
Cash generated by operations before capital spending.
CapEx
$3.5M
Capital spending and related asset purchases.
FCF margin
12.4%
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 |
|---|---|---|---|---|---|
| 2024-05-04 | $881.8M | -$109.8M | $4.9M | -$114.7M | -13.0% |
| 2024-08-03 | $798.3M | $68.6M | $3.1M | $65.5M | 8.2% |
| 2024-11-02 | $860.3M | $24.6M | $4.6M | $20.0M | 2.3% |
| 2025-02-01 | $1.3B | $162.3M | $3.5M | $158.8M | 12.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 120.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $4.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Cash Generation
The significant improvement in operating cash flow drove free cash flow positive, even as revenue declined year over year. This shift from negative to positive cash generation represents a key operational highlight.
This strengthened the company's liquidity position and financial flexibility, as supported by substantial cash and marketable securities on hand.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a higher level of revenue into operating cash flow, while capital expenditure remained modest, leading to solid free cash flow and a healthy margin.
Relative to the previous quarter, revenue and operating cash flow increased and free cash flow improved. Compared to the same quarter a year earlier, revenue was lower but operating cash flow shifted from negative to positive, and free cash flow turned positive, resulting in a much stronger margin.
Monitor the company's ability to sustain positive operating cash flow given that revenue was lower than the prior year.