Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned strongly positive this quarter, driven by a substantial improvement in operating cash flow. The free cash flow margin also improved markedly compared to both the prior and year-ago quarters.
- Revenue declined from the prior quarter, but operating cash flow increased, leading to higher free cash flow. Capital expenditure remained low, which supported a higher free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow increased despite lower revenue. Compared to the same quarter one year earlier, free cash flow improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$433.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$189.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$192.5M
Cash generated by operations before capital spending.
CapEx
$2.9M
Capital spending and related asset purchases.
FCF margin
25.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-05-03 | $732.4M | $192.5M | $2.9M | $189.6M | 25.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 423.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Strength
Operating cash flow improved significantly from a year ago and also rose from the prior quarter, driving free cash flow higher. The improvement was the primary factor behind the quarter's positive free cash flow.
Strong operating cash flow generation provides ample liquidity for the company.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the prior quarter, but operating cash flow increased, leading to higher free cash flow. Capital expenditure remained low, which supported a higher free cash flow margin.
Compared to the immediately preceding quarter, free cash flow increased despite lower revenue. Compared to the same quarter one year earlier, free cash flow improved from negative to positive.
Monitor the company's cash and cash equivalents position and any potential use of proceeds from assets held for sale.