Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion strengthened as operating cash flow rose while capital spending was stable, lifting free cash flow and its margin. Revenue was unchanged sequentially and higher year over year, but the cash flow improvement was proportionally stronger.
- Operating cash flow expanded from the prior quarter and from a year ago, while capital expenditure was little changed from both periods; consequently, free cash flow and free cash flow margin improved sequentially and year over year.
- Revenue was stable versus the preceding quarter and higher than the same quarter last year. Operating cash flow grew both sequentially and year over year, and free cash flow followed with a similar pattern, leading to an improved free cash flow margin compared with both prior periods.
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
$308.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$411.0M
Cash generated by operations before capital spending.
CapEx
$103.0M
Capital spending and related asset purchases.
FCF margin
3.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-11-30 | $8.3B | $323.0M | $95.0M | $228.0M | 2.7% |
| 2026-02-28 | $8.3B | $411.0M | $103.0M | $308.0M | 3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 138.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | 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 Uplift
Operating cash flow increased from both the immediate prior quarter and the same quarter one year earlier, while capital expenditure remained relatively stable. This combination drove a notable improvement in free cash flow and its margin.
Free cash flow margin widened from both comparison periods, reflecting stronger cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow expanded from the prior quarter and from a year ago, while capital expenditure was little changed from both periods; consequently, free cash flow and free cash flow margin improved sequentially and year over year.
Revenue was stable versus the preceding quarter and higher than the same quarter last year. Operating cash flow grew both sequentially and year over year, and free cash flow followed with a similar pattern, leading to an improved free cash flow margin compared with both prior periods.
Monitor whether operating cash flow can sustain its expansion relative to revenue, as the current quarter showed a proportionally larger increase.