Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative in the current quarter, driven by a sharp decline in operating cash flow despite lower capital expenditure. Revenue was slightly lower than the prior quarter but higher than the same quarter last year.
- Revenue remained relatively stable compared to the prior quarter and the year-ago quarter, but operating cash flow weakened significantly, resulting in a negative free cash flow margin. Capital expenditure was lower than the prior quarter but higher than the same quarter last year, which did not offset the drop in operating cash flow.
- Compared to the prior quarter, free cash flow shifted from positive to negative, with operating cash flow substantially lower. Versus the same quarter one year earlier, both operating cash flow and free cash flow were markedly lower, while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$145.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$38.0M
Cash generated by operations before capital spending.
CapEx
$183.0M
Capital spending and related asset purchases.
FCF margin
-1.1%
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 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -35.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.0B | 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 decline
Operating cash flow decreased significantly compared to both the prior quarter and the same quarter last year, while revenue was relatively stable. The filing notes that the company relies on operating cash flow as its primary source of liquidity.
This decline drove free cash flow to a negative position, reversing the positive free cash flow seen in the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained relatively stable compared to the prior quarter and the year-ago quarter, but operating cash flow weakened significantly, resulting in a negative free cash flow margin. Capital expenditure was lower than the prior quarter but higher than the same quarter last year, which did not offset the drop in operating cash flow.
Compared to the prior quarter, free cash flow shifted from positive to negative, with operating cash flow substantially lower. Versus the same quarter one year earlier, both operating cash flow and free cash flow were markedly lower, while revenue was higher.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the negative free cash flow.