Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned strongly positive from a negative prior quarter, and improved versus the same quarter last year. The free cash flow margin widened meaningfully on both comparisons.
- Revenue was stable relative to both comparison periods. Operating cash flow surged to a level well above the prior quarter and the year-ago quarter, while capital expenditure remained modest despite a sequential increase. The combination drove free cash flow and its margin substantially higher.
- Compared to the preceding quarter, operating cash flow swung from negative to positive, and free cash flow and its margin improved dramatically. Versus the same quarter a year ago, operating cash flow and free cash flow both rose, and the margin widened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$28.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$85.2M
Capital spending and related asset purchases.
FCF margin
17.9%
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 |
|---|---|---|---|---|---|
| 2025-02-28 | $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% |
| 2025-11-30 | $9.4B | $1.8B | $85.2M | $1.7B | 17.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 341.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | 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 surge
Operating cash flow delivered the strongest quarter among the three periods shown. This was the primary observable factor behind the free cash flow turnaround and margin expansion.
The surge in operating cash flow reversed a prior-quarter free cash loss and lifted the margin to a higher level than both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to both comparison periods. Operating cash flow surged to a level well above the prior quarter and the year-ago quarter, while capital expenditure remained modest despite a sequential increase. The combination drove free cash flow and its margin substantially higher.
Compared to the preceding quarter, operating cash flow swung from negative to positive, and free cash flow and its margin improved dramatically. Versus the same quarter a year ago, operating cash flow and free cash flow both rose, and the margin widened.
Monitor capital expenditure trends given the sequential increase this quarter.