Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially due to higher operating cash flow and lower capital spending, but declined compared to the same quarter last year. The free cash flow margin followed the same pattern, increasing from the prior quarter while falling year over year.
- Revenue was higher than both the previous quarter and the year-ago quarter. Operating cash flow increased sequentially but decreased from the same period last year. Capital expenditure was lower than both comparison periods, which helped free cash flow. As a result, free cash flow and its margin improved sequentially but weakened year over year.
- Compared to the prior quarter, free cash flow and margin were higher. Compared to the same quarter one year earlier, both were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$320.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$406.0M
Cash generated by operations before capital spending.
CapEx
$86.0M
Capital spending and related asset purchases.
FCF margin
4.1%
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 |
|---|---|---|---|---|---|
| 2024-08-31 | $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% |
| 2025-05-31 | $7.8B | $406.0M | $86.0M | $320.0M | 4.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.4B | 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 improvement
Operating cash flow was higher than the previous quarter, contributing to the sequential increase in free cash flow. Capital expenditure was also lower, further supporting free cash flow.
This combination resulted in a sequential improvement in free cash flow margin, although the margin remained below the year-ago level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the previous quarter and the year-ago quarter. Operating cash flow increased sequentially but decreased from the same period last year. Capital expenditure was lower than both comparison periods, which helped free cash flow. As a result, free cash flow and its margin improved sequentially but weakened year over year.
Compared to the prior quarter, free cash flow and margin were higher. Compared to the same quarter one year earlier, both were lower.
The filing states that the company believes its liquidity sources will be adequate to fund capital expenditures, dividends, share repurchases, acquisitions, and working capital requirements, which is a key item to monitor given the current cash flow trends.