Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased substantially from the prior quarter, leading to a strong improvement in operating cash flow and free cash flow. The free cash flow margin improved sequentially but was slightly lower than the same quarter last year.
- Operating cash flow rose significantly alongside revenue, while capital expenditure remained minimal, resulting in a high conversion of revenue into free cash flow.
- Compared to the immediately preceding quarter, all key metrics were higher with a notable improvement in margin. Versus the same quarter one year earlier, revenue and free cash flow were higher, but the free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.4B
Cash generated by operations before capital spending.
CapEx
$35.0M
Capital spending and related asset purchases.
FCF margin
56.2%
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 |
|---|---|---|---|---|---|
| 2024-07-31 | $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% |
| 2025-04-30 | $7.8B | $4.4B | $35.0M | $4.4B | 56.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 154.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$963.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth
Revenue increased substantially from the prior quarter, which was the primary observable factor behind the higher operating cash flow and free cash flow.
The higher revenue directly supported the expansion in free cash flow and margin improvement sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose significantly alongside revenue, while capital expenditure remained minimal, resulting in a high conversion of revenue into free cash flow.
Compared to the immediately preceding quarter, all key metrics were higher with a notable improvement in margin. Versus the same quarter one year earlier, revenue and free cash flow were higher, but the free cash flow margin was slightly lower.
Monitor the free cash flow margin trend, as it showed a slight decline from the year-ago level despite a sequential improvement.