Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated positive free cash flow in the quarter, with revenue higher than both the prior quarter and the same quarter last year. Operating cash flow was higher than a year ago but lower than the previous quarter, while capital expenditure remained stable.
- Operating cash flow converted into free cash flow after modest capital spending, resulting in a free cash flow margin that improved from the prior year but weakened sequentially.
- Compared to the previous quarter, operating cash flow and free cash flow were lower, despite higher revenue, indicating a shift in cash conversion. Versus the same quarter last year, both operating cash flow and free cash flow improved significantly, driven by higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$481.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$113.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$117.4M
Cash generated by operations before capital spending.
CapEx
$4.1M
Capital spending and related asset purchases.
FCF margin
11.7%
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 |
|---|---|---|---|---|---|
| 2024-11-02 | $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% |
| 2025-08-02 | $972.2M | $117.4M | $4.1M | $113.3M | 11.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.2% | 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.
Revenue growth supporting free cash flow
Revenue increased compared to both the prior quarter and the same quarter last year, and free cash flow margin improved year over year.
Higher revenue provided the basis for stronger year-over-year free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted into free cash flow after modest capital spending, resulting in a free cash flow margin that improved from the prior year but weakened sequentially.
Compared to the previous quarter, operating cash flow and free cash flow were lower, despite higher revenue, indicating a shift in cash conversion. Versus the same quarter last year, both operating cash flow and free cash flow improved significantly, driven by higher revenue.
Monitor the trend in operating cash flow relative to revenue, as sequential weakening may signal changes in cash collection or expense timing.