Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the quarter ended February 1, 2025, the company generated positive free cash flow after a negative result in the prior quarter, though it was lower than the same quarter last year. Operating cash flow improved sequentially but declined year over year, while capital expenditures were reduced compared to both periods.
- Revenue was slightly higher than the prior quarter but lower than a year ago. Operating cash flow as a percentage of revenue increased from the previous quarter but decreased from the prior year period, leading to a free cash flow margin that turned positive sequentially but was below the year-ago level.
- Compared to the prior quarter, free cash flow improved significantly, driven by higher operating cash flow and slightly lower capital spending. Versus the same quarter last year, free cash flow declined, primarily reflecting a decrease in operating cash flow despite lower capital expenditures.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$520.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$884.0M
Capital spending and related asset purchases.
FCF margin
1.5%
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 |
|---|---|---|---|---|---|
| 2024-02-03 | $37.1B | $1.9B | $997.0M | $923.0M | 2.5% |
| 2024-08-17 | $33.9B | $1.1B | $875.0M | $247.0M | 0.7% |
| 2024-11-09 | $33.6B | $926.0M | $954.0M | -$28.0M | -0.1% |
| 2025-02-01 | $34.3B | $1.4B | $884.0M | $520.0M | 1.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 82.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.9B | 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 Change
Operating cash flow rebounded sequentially from a low level in the prior quarter, but remained below the amount generated in the same quarter last year. This was the primary factor behind the swing in free cash flow.
The sequential improvement in operating cash flow was the strongest observable driver of the free cash flow turning positive, though the year-over-year comparison remains a watchpoint.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter but lower than a year ago. Operating cash flow as a percentage of revenue increased from the previous quarter but decreased from the prior year period, leading to a free cash flow margin that turned positive sequentially but was below the year-ago level.
Compared to the prior quarter, free cash flow improved significantly, driven by higher operating cash flow and slightly lower capital spending. Versus the same quarter last year, free cash flow declined, primarily reflecting a decrease in operating cash flow despite lower capital expenditures.
Monitor the trend in operating cash flow given its sequential improvement but year-over-year decline.