Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened versus the prior quarter but was slightly lower than the year-ago level.
- Operating cash flow as a proportion of revenue increased relative to the prior quarter, supporting a higher free cash flow margin. Capital expenditure remained stable in magnitude across all periods.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter last year, revenue and operating cash flow were higher, while free cash flow was higher and the free cash flow margin was slightly lower.
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
$407.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$441.0M
Cash generated by operations before capital spending.
CapEx
$34.0M
Capital spending and related asset purchases.
FCF margin
25.4%
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 |
|---|---|---|---|---|---|
| 2025-04-30 | $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% |
| 2026-01-31 | $1.6B | $441.0M | $34.0M | $407.0M | 25.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$356.0M | 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 Growth
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter, outpacing the growth in revenue. This was the strongest observable driver of free cash flow improvement.
Higher operating cash flow directly lifted free cash flow and the free cash flow margin compared to the prior quarter.
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 increased relative to the prior quarter, supporting a higher free cash flow margin. Capital expenditure remained stable in magnitude across all periods.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter last year, revenue and operating cash flow were higher, while free cash flow was higher and the free cash flow margin was slightly lower.
Monitor the trend in free cash flow margin relative to the year-ago level, as it weakened slightly despite higher absolute free cash flow.