Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the same quarter one year earlier but lower than the immediately preceding quarter. Operating cash flow and free cash flow turned negative, resulting in a weakened free cash flow margin compared to both prior periods.
- Despite higher revenue, operating cash flow was negative, which drove free cash flow negative and produced a negative free cash flow margin. Capital expenditure was lower than the year-ago quarter but higher than the prior quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all weakened. Compared to the same quarter one year earlier, revenue improved, but operating cash flow, free cash flow, and free cash flow margin all weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$345.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$289.0M
Cash generated by operations before capital spending.
CapEx
$56.0M
Capital spending and related asset purchases.
FCF margin
-4.5%
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 |
|---|---|---|---|---|---|
| 2024-05-31 | $8.8B | $241.8M | $38.8M | $203.0M | 2.3% |
| 2024-08-31 | $9.4B | $819.2M | $18.4M | $800.8M | 8.5% |
| 2024-11-30 | $9.9B | $974.5M | $41.4M | $933.1M | 9.4% |
| 2025-02-28 | $7.6B | -$289.0M | $56.0M | -$345.1M | -4.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -66.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Turned Negative
Operating cash flow moved from positive in both prior periods to negative in the current quarter, despite revenue being higher than the year-ago quarter. This shift is the strongest observable driver of the negative free cash flow.
The negative operating cash flow directly caused free cash flow to be negative, even with capital expenditure lower than the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was negative, which drove free cash flow negative and produced a negative free cash flow margin. Capital expenditure was lower than the year-ago quarter but higher than the prior quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all weakened. Compared to the same quarter one year earlier, revenue improved, but operating cash flow, free cash flow, and free cash flow margin all weakened.
Monitor the shift from positive to negative operating cash flow, as it is the primary driver of the negative free cash flow.