Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter, the company's free cash flow was strong, with operating cash flow significantly exceeding capital expenditure. Revenue was lower than the prior quarter but higher than the same quarter last year, while free cash flow margins improved compared to both periods.
- With robust operating cash flow and minimal capital expenditure, the company converted a substantial portion of revenue into free cash flow, resulting in a high free cash flow margin. The margin improved notably from both the preceding quarter and the same quarter a year earlier.
- Compared to the preceding quarter, revenue was lower but operating cash flow, free cash flow, and margin all improved. Compared to the same quarter a year earlier, revenue, operating cash flow, free cash flow, and margin all showed improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$740.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$332.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$337.4M
Cash generated by operations before capital spending.
CapEx
$4.5M
Capital spending and related asset purchases.
FCF margin
39.9%
The share of revenue converted into free cash flow.
TTM FCF yield
7.4%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-08-02 | $972.2M | $117.4M | $4.1M | $113.3M | 11.7% |
| 2025-11-01 | $821.0M | $111.3M | $4.3M | $107.0M | 13.0% |
| 2026-01-31 | $1.1B | $193.6M | $6.2M | $187.4M | 17.0% |
| 2026-05-02 | $835.3M | $337.4M | $4.5M | $332.9M | 39.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 85.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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
The primary driver this quarter was the substantial increase in operating cash flow compared to both the preceding quarter and the same quarter a year earlier, even as revenue declined sequentially. This allowed the company to achieve a materially higher free cash flow margin.
Strong operating cash flow provided ample coverage for capital expenditure and generated a high free cash flow margin, enhancing financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With robust operating cash flow and minimal capital expenditure, the company converted a substantial portion of revenue into free cash flow, resulting in a high free cash flow margin. The margin improved notably from both the preceding quarter and the same quarter a year earlier.
Compared to the preceding quarter, revenue was lower but operating cash flow, free cash flow, and margin all improved. Compared to the same quarter a year earlier, revenue, operating cash flow, free cash flow, and margin all showed improvement.
Monitor the sustainability of operating cash flow given the lower revenue base, as well as any liquidity implications from the significant derivative collateral and digital asset positions noted in the filing.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $10.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 7.4% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.