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 a year ago. Free cash flow turned positive from a year ago but declined sharply from the prior quarter, resulting in a lower cash conversion margin.
- Operating cash flow was significantly lower than the prior quarter, while capital expenditure was higher. This led to free cash flow that was substantially lower sequentially, though positive compared to the same quarter last year.
- Compared to the prior quarter, free cash flow and margin both weakened. Compared to the same quarter a year ago, free cash flow improved from negative to positive and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$72.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$374.0M
Cash generated by operations before capital spending.
CapEx
$302.0M
Capital spending and related asset purchases.
FCF margin
0.5%
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 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 12.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.8B | 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 Decline
Operating cash flow dropped substantially from the prior quarter, while capital expenditure increased, resulting in a much lower free cash flow.
The lower operating cash flow was the primary factor behind the weakened free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was significantly lower than the prior quarter, while capital expenditure was higher. This led to free cash flow that was substantially lower sequentially, though positive compared to the same quarter last year.
Compared to the prior quarter, free cash flow and margin both weakened. Compared to the same quarter a year ago, free cash flow improved from negative to positive and margin improved.
Monitor the level of operating cash flow, which decreased sharply from the prior quarter.