Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, with operating cash flow substantially higher than the prior quarter. Revenue and free cash flow margin also improved compared to both the prior quarter and the same quarter a year ago.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin improved from the prior quarter and from a year ago.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were significantly higher, while capital expenditure was slightly higher. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$215.0M
Capital spending and related asset purchases.
FCF margin
10.4%
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 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 189.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.7B | 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 increased markedly from the prior quarter, reversing a negative free cash flow position.
This improvement provided a stronger cash generation base for the company.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin improved from the prior quarter and from a year ago.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were significantly higher, while capital expenditure was slightly higher. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure also higher.
Monitor the free cash flow margin for signs of sustained improvement.