Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved versus the prior quarter and the same quarter last year. The free cash flow margin strengthened compared to both periods.
- Revenue was higher sequentially and year-over-year, while operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, further supporting free cash flow generation.
- Compared to the immediately preceding quarter, revenue increased, operating cash flow improved significantly, and free cash flow improved, resulting in a higher margin. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and its margin were both higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$31.0M
Capital spending and related asset purchases.
FCF margin
26.2%
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 | $6.7B | $4.0B | $61.0M | $3.9B | 57.7% |
| 2024-07-31 | $3.2B | $417.0M | $17.0M | $400.0M | 12.6% |
| 2024-10-31 | $3.3B | $362.0M | $33.0M | $329.0M | 10.0% |
| 2025-01-31 | $4.0B | $1.1B | $31.0M | $1.0B | 26.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 220.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow Growth
Operating cash flow rose substantially from the prior quarter and from the same quarter last year, outpacing revenue growth. This directly drove the improvement in free cash flow and margin.
The increase in operating cash flow was the primary factor behind the higher free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher sequentially and year-over-year, while operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, further supporting free cash flow generation.
Compared to the immediately preceding quarter, revenue increased, operating cash flow improved significantly, and free cash flow improved, resulting in a higher margin. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and its margin were both higher.
Monitor future operating cash flow trends to see if the elevated level relative to revenue persists.