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, improving from a negative figure in the same quarter a year earlier and also exceeding the preceding quarter. The company's filing indicates that its liquidity sources are considered adequate to fund capital expenditures and other needs.
- Revenue was lower than the previous quarter, but operating cash flow increased, resulting in a higher free cash flow margin. The conversion of revenue into cash strengthened compared to both the prior quarter and the year-ago period.
- Compared to the preceding quarter, revenue declined while operating cash flow and free cash flow improved. Versus the same quarter a year earlier, revenue was lower, but operating cash flow and free cash flow improved significantly, and capital expenditure was reduced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$218.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$334.0M
Cash generated by operations before capital spending.
CapEx
$116.0M
Capital spending and related asset purchases.
FCF margin
3.2%
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 |
|---|---|---|---|---|---|
| 2024-05-31 | $6.8B | $515.0M | $106.0M | $409.0M | 6.0% |
| 2024-08-31 | $7.0B | $535.0M | $124.0M | $411.0M | 5.9% |
| 2024-11-30 | $7.0B | $312.0M | $97.0M | $215.0M | 3.1% |
| 2025-02-28 | $6.7B | $334.0M | $116.0M | $218.0M | 3.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 186.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | 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 Strength
The increase in operating cash flow was the strongest driver of the free cash flow improvement. It rose compared to both the prior quarter and the year-ago quarter, more than offsetting the decline in revenue and the modest increase in capital expenditure versus the preceding quarter.
Higher operating cash flow directly boosted free cash flow and the free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the previous quarter, but operating cash flow increased, resulting in a higher free cash flow margin. The conversion of revenue into cash strengthened compared to both the prior quarter and the year-ago period.
Compared to the preceding quarter, revenue declined while operating cash flow and free cash flow improved. Versus the same quarter a year earlier, revenue was lower, but operating cash flow and free cash flow improved significantly, and capital expenditure was reduced.
Monitor revenue trends, as lower revenue could pressure future cash generation if operating cash flow does not continue to improve.