Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive and the margin improved markedly compared to both the prior quarter and the same quarter last year. Revenue was stable sequentially and higher year over year, while operating cash flow rose sharply.
- Operating cash flow increased substantially from the prior quarter and from a year ago, while capital expenditure declined relative to both periods. This combination drove free cash flow higher and lifted the free cash flow margin into positive territory.
- Compared with the immediately preceding quarter, free cash flow and its margin improved, supported by higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow turned from negative to positive, with operating cash flow significantly higher and capital expenditure slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$756.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$926.0M
Cash generated by operations before capital spending.
CapEx
$170.0M
Capital spending and related asset purchases.
FCF margin
5.2%
The share of revenue converted into free cash flow.
TTM FCF yield
17.7%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $926.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $170.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $756.0M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-04-30 | $16.5B | $508.0M | $178.0M | $330.0M | 2.0% |
| 2022-07-31 | $14.6B | $394.0M | $196.0M | $198.0M | 1.4% |
| 2022-10-31 | $14.8B | $1.9B | $118.0M | $1.8B | 12.1% |
| 2023-01-31 | $13.8B | -$16.0M | $192.0M | -$208.0M | -1.5% |
| 2023-04-30 | $12.9B | $636.0M | $130.0M | $506.0M | 3.9% |
| 2023-07-31 | $13.2B | $976.0M | $137.0M | $839.0M | 6.4% |
| 2023-10-31 | $13.8B | $2.0B | $134.0M | $1.8B | 13.3% |
| 2024-01-31 | $13.2B | $121.0M | $158.0M | -$37.0M | -0.3% |
| 2024-04-30 | $12.8B | $581.0M | $119.0M | $462.0M | 3.6% |
| 2024-07-31 | $13.5B | $1.4B | $162.0M | $1.3B | 9.3% |
| 2024-10-31 | $14.1B | $1.6B | $153.0M | $1.5B | 10.5% |
| 2025-01-31 | $13.5B | $374.0M | $302.0M | $72.0M | 0.5% |
| 2025-04-30 | $13.2B | $38.0M | $183.0M | -$145.0M | -1.1% |
| 2025-07-31 | $13.9B | $1.7B | $215.0M | $1.4B | 10.4% |
| 2025-10-31 | $14.6B | $1.6B | $197.0M | $1.4B | 9.7% |
| 2026-01-31 | $14.4B | $383.0M | $233.0M | $150.0M | 1.0% |
| 2026-04-30 | $14.4B | $926.0M | $170.0M | $756.0M | 5.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 168.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.0B | 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 Surge
Operating cash flow rose sharply from both the prior quarter and the year-ago period, providing the primary lift to free cash flow. Revenue was stable sequentially and higher year over year, but the cash conversion improvement was driven by the operating cash flow increase.
The stronger operating cash flow turned free cash flow positive and expanded the free cash flow margin significantly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased substantially from the prior quarter and from a year ago, while capital expenditure declined relative to both periods. This combination drove free cash flow higher and lifted the free cash flow margin into positive territory.
Compared with the immediately preceding quarter, free cash flow and its margin improved, supported by higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow turned from negative to positive, with operating cash flow significantly higher and capital expenditure slightly lower.
Monitor the trend in capital expenditure relative to operating cash flow, as the current quarter's lower spending contributed to the free cash flow improvement.
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 | $21.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 17.7% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 7.2x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |