Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the year-ago quarter, while operating cash flow and free cash flow turned deeply negative. Free cash flow margin worsened significantly compared to both periods, driven by a larger outflow from operations.
- Revenue was lower than both the prior quarter and the year-ago period, but operating cash flow shifted from positive to a large outflow, consuming cash. Capital expenditure remained roughly stable, so the cash conversion from revenue to free cash flow weakened substantially, producing a deeply negative free cash flow margin.
- Compared to the immediately preceding quarter, revenue was slightly lower, operating cash flow worsened from a negative outflow to a larger negative outflow, and the free cash flow deficit increased, leading to a weaker free cash flow margin. Versus the same quarter one year earlier, revenue was moderately lower, operating cash flow swung from positive to negative, and free cash flow moved from a surplus to a sizable deficit, with the margin turning negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$107.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$461.0M
Cash generated by operations before capital spending.
CapEx
$547.0M
Capital spending and related asset purchases.
FCF margin
-13.2%
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 |
|---|---|---|---|---|---|
| 2024-07-31 | $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% |
| 2025-04-30 | $7.6B | -$461.0M | $547.0M | -$1.0B | -13.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.9B | 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 Outflow
The shift in operating cash flow from a year-ago surplus to a large deficit in the current quarter is the strongest observable driver of the change in free cash flow. Revenue declined, but the magnitude of the cash outflow far exceeded the revenue drop.
This cash consumption directly caused free cash flow to turn deeply negative and the free cash flow margin to fall sharply.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago period, but operating cash flow shifted from positive to a large outflow, consuming cash. Capital expenditure remained roughly stable, so the cash conversion from revenue to free cash flow weakened substantially, producing a deeply negative free cash flow margin.
Compared to the immediately preceding quarter, revenue was slightly lower, operating cash flow worsened from a negative outflow to a larger negative outflow, and the free cash flow deficit increased, leading to a weaker free cash flow margin. Versus the same quarter one year earlier, revenue was moderately lower, operating cash flow swung from positive to negative, and free cash flow moved from a surplus to a sizable deficit, with the margin turning negative.
Monitor the trajectory of operating cash flow, which drove the large free cash flow consumption this quarter.