Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened compared to both the prior quarter and the same quarter last year, despite revenue being stable versus the prior quarter and higher than a year ago. Operating cash flow declined significantly, driving the reduction in free cash flow.
- Revenue was stable sequentially and higher year over year, but operating cash flow fell sharply, resulting in lower free cash flow and a narrower free cash flow margin. Capital expenditure was slightly higher than the prior quarter but unchanged from a year ago.
- Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter last year, operating cash flow, free cash flow, and free cash flow margin were also lower, while revenue was higher.
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
$187.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$225.0M
Cash generated by operations before capital spending.
CapEx
$38.0M
Capital spending and related asset purchases.
FCF margin
13.2%
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 |
|---|---|---|---|---|---|
| 2025-01-31 | $1.3B | $378.0M | $32.0M | $346.0M | 26.7% |
| 2025-04-30 | $1.3B | $484.0M | $27.0M | $457.0M | 35.0% |
| 2025-07-31 | $1.4B | $322.0M | $31.0M | $291.0M | 21.5% |
| 2025-10-31 | $1.4B | $225.0M | $38.0M | $187.0M | 13.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 80.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$661.0M | 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 Decline
Operating cash flow decreased significantly from both the prior quarter and the year-ago quarter, while revenue was stable or higher. This divergence drove the lower free cash flow and margin.
The weaker cash conversion from operations reduced free cash flow despite stable revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year over year, but operating cash flow fell sharply, resulting in lower free cash flow and a narrower free cash flow margin. Capital expenditure was slightly higher than the prior quarter but unchanged from a year ago.
Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter last year, operating cash flow, free cash flow, and free cash flow margin were also lower, while revenue was higher.
Monitor operating cash flow trends, as the decline was the primary factor behind the weakened free cash flow conversion.