Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative this quarter, a significant improvement from the prior quarter's larger deficit but a sharp reversal from the positive cash flow a year ago. The cash conversion weakened compared to the same quarter last year, driven by a larger operating cash outflow relative to revenue.
- Revenue was higher than the prior quarter, yet operating cash flow remained negative, resulting in a negative free cash flow margin that improved from the prior quarter but was lower than the same quarter last year. Capital expenditure was higher than both comparison periods.
- Compared to the immediately preceding quarter, free cash flow improved as the operating cash outflow narrowed. Compared to the same quarter one year earlier, free cash flow weakened, turning from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$713.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$190.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$158.6M
Cash generated by operations before capital spending.
CapEx
$32.2M
Capital spending and related asset purchases.
FCF margin
-2.2%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-08-31 | $8.8B | -$158.6M | $32.2M | -$190.8M | -2.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -32.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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 Deficit
Operating cash flow was negative this quarter, though the deficit was substantially smaller than the prior quarter. This was the strongest observable driver of the negative free cash flow.
The operating cash outflow directly caused free cash flow to remain negative despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, yet operating cash flow remained negative, resulting in a negative free cash flow margin that improved from the prior quarter but was lower than the same quarter last year. Capital expenditure was higher than both comparison periods.
Compared to the immediately preceding quarter, free cash flow improved as the operating cash outflow narrowed. Compared to the same quarter one year earlier, free cash flow weakened, turning from positive to negative.
Monitor whether operating cash flow can turn positive in future quarters, as it has been negative for two consecutive quarters.