Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased compared with both the prior quarter and the same quarter last year. The free cash flow margin turned positive after a negative margin in the preceding quarter.
- Revenue generated positive operating cash flow, which after capital expenditure resulted in a free cash flow margin in the mid-single-digit range. Operating cash flow exceeded capital expenditure by a wide margin, supporting the conversion to free cash flow.
- Compared with the prior quarter, operating cash flow improved from a negative figure to a positive figure, and free cash flow also turned positive. Versus the same quarter last year, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$225.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$729.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$576.0M
Capital spending and related asset purchases.
FCF margin
8.0%
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 |
|---|---|---|---|---|---|
| 2024-10-31 | $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% |
| 2025-07-31 | $9.1B | $1.3B | $576.0M | $729.0M | 8.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 239.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.6B | 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 Reversal
The most notable change was operating cash flow moving from negative in the prior quarter to positive in the current quarter, which directly drove the swing in free cash flow and margin.
This improvement enabled free cash flow to turn positive and the free cash flow margin to recover from a negative figure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue generated positive operating cash flow, which after capital expenditure resulted in a free cash flow margin in the mid-single-digit range. Operating cash flow exceeded capital expenditure by a wide margin, supporting the conversion to free cash flow.
Compared with the prior quarter, operating cash flow improved from a negative figure to a positive figure, and free cash flow also turned positive. Versus the same quarter last year, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor whether operating cash flow remains at a level that sustains the current free cash flow margin.