Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow turned negative, resulting in a negative free cash flow margin that weakened compared to both periods.
- Revenue did not convert into positive operating cash flow; capital expenditure further reduced free cash flow, leading to a negative margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the margin weakened. Versus the same quarter one year earlier, revenue was higher but operating cash flow was lower, free cash flow was more negative, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$918.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$390.0M
Cash generated by operations before capital spending.
CapEx
$528.0M
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 |
|---|---|---|---|---|---|
| 2024-04-30 | $7.2B | $1.1B | $560.0M | $533.0M | 7.4% |
| 2024-07-31 | $7.7B | $1.2B | $543.0M | $611.0M | 7.9% |
| 2024-10-31 | $8.5B | $2.0B | $608.0M | $1.4B | 16.8% |
| 2025-01-31 | $7.9B | -$390.0M | $528.0M | -$918.0M | -11.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -146.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.4B | 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 Swing
Operating cash flow shifted from positive in the prior quarter to negative in the current quarter, a larger decline than the change in revenue.
This swing was the primary factor behind the negative free cash flow and weakened margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue did not convert into positive operating cash flow; capital expenditure further reduced free cash flow, leading to a negative margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the margin weakened. Versus the same quarter one year earlier, revenue was higher but operating cash flow was lower, free cash flow was more negative, and the margin weakened.
Monitor the trajectory of operating cash flow given its significant decline from positive to negative.