Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the prior quarter but lower than the same quarter last year. 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 deeply negative, and capital expenditure was lower than both prior periods. The combination produced a negative free cash flow and a weakened free cash flow margin.
- Compared to the immediately preceding quarter, revenue improved but operating cash flow worsened significantly, and free cash flow margin declined. Versus the same quarter one year earlier, revenue was lower, operating cash flow shifted from positive to negative, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$278.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.1B
Cash generated by operations before capital spending.
CapEx
$15.2M
Capital spending and related asset purchases.
FCF margin
-13.3%
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 |
|---|---|---|---|---|---|
| 2024-08-31 | $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% |
| 2025-05-31 | $8.4B | -$1.1B | $15.2M | -$1.1B | -13.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -232.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | 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 Swing
Operating cash flow moved from positive in the year-ago quarter and slightly negative in the prior quarter to a substantially negative level this quarter. This shift was the strongest observable driver of the free cash flow decline.
The negative operating cash flow overwhelmed the lower capital expenditure, resulting in a free cash flow deficit and a weakened margin.
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 deeply negative, and capital expenditure was lower than both prior periods. The combination produced a negative free cash flow and a weakened free cash flow margin.
Compared to the immediately preceding quarter, revenue improved but operating cash flow worsened significantly, and free cash flow margin declined. Versus the same quarter one year earlier, revenue was lower, operating cash flow shifted from positive to negative, and free cash flow margin weakened.
Monitor the magnitude of negative operating cash flow relative to revenue, as it drove the free cash flow deficit.