Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year. Free cash flow was higher than the prior quarter but essentially stable versus the year-ago period, while free cash flow margin weakened relative to last year.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the same quarter last year. Capital expenditure increased from both comparison periods, resulting in free cash flow that improved sequentially but remained near the year-ago level.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, and free cash flow margin strengthened. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow was essentially unchanged and free cash flow margin weakened.
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
$419.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$588.0M
Cash generated by operations before capital spending.
CapEx
$169.0M
Capital spending and related asset purchases.
FCF margin
5.1%
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 |
|---|---|---|---|---|---|
| 2024-11-30 | $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% |
| 2025-08-31 | $8.3B | $588.0M | $169.0M | $419.0M | 5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 192.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$952.0M | 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 driving operating cash flow
Revenue was higher than both the prior quarter and the same quarter last year, and operating cash flow improved sequentially and year-over-year. This was the strongest observable driver of the quarter's cash generation.
Higher revenue supported a sequential increase in free cash flow despite a larger capital expenditure outlay.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the same quarter last year. Capital expenditure increased from both comparison periods, resulting in free cash flow that improved sequentially but remained near the year-ago level.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, and free cash flow margin strengthened. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow was essentially unchanged and free cash flow margin weakened.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter, as it directly impacts free cash flow conversion.