Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow margin weakened significantly compared to the prior quarter, but improved relative to the same quarter last year. Operating cash flow and free cash flow were both lower than the preceding quarter and slightly lower than the year-ago quarter.
- With revenue lower than the preceding quarter, operating cash flow of three hundred eighty-one million dollars and capital expenditure of fifteen million dollars yielded free cash flow of three hundred sixty-six million dollars, translating to a free cash flow margin below ten percent.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and free cash flow margin weakened markedly. Versus the same quarter one year earlier, revenue was higher, while operating cash flow and free cash flow were slightly lower, though free cash flow margin improved.
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
$366.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$381.0M
Cash generated by operations before capital spending.
CapEx
$15.0M
Capital spending and related asset purchases.
FCF margin
9.6%
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 | $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% |
| 2025-07-31 | $3.8B | $381.0M | $15.0M | $366.0M | 9.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash Conversion Efficiency
Free cash flow margin dropped from over fifty-five percent in the prior quarter to below ten percent in the current quarter, representing the strongest observable shift in the data. This decline occurred despite lower capital expenditure.
The sharp reduction in cash conversion from revenue to free cash flow limited the absolute free cash flow generated this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue lower than the preceding quarter, operating cash flow of three hundred eighty-one million dollars and capital expenditure of fifteen million dollars yielded free cash flow of three hundred sixty-six million dollars, translating to a free cash flow margin below ten percent.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and free cash flow margin weakened markedly. Versus the same quarter one year earlier, revenue was higher, while operating cash flow and free cash flow were slightly lower, though free cash flow margin improved.
Monitor whether operating cash flow can sustain its current level relative to revenue, given the sequential decline in conversion efficiency.