Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned negative, leading to a larger free cash outflow compared to the prior quarter. The free cash flow margin weakened versus both the preceding quarter and the same quarter last year.
- Revenue declined from the prior quarter, while operating cash flow shifted from positive to negative, resulting in a negative free cash flow. Capital expenditure was lower than both the preceding quarter and the year-ago quarter, but the drop in operating cash flow was the primary factor behind the negative cash conversion.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased, and the free cash flow margin turned negative. Versus the same quarter one year earlier, revenue was lower, operating cash flow was more negative, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$90.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$463.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$433.5M
Cash generated by operations before capital spending.
CapEx
$30.0M
Capital spending and related asset purchases.
FCF margin
-7.0%
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 |
|---|---|---|---|---|---|
| 2025-05-31 | $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% |
| 2026-02-28 | $6.6B | -$433.5M | $30.0M | -$463.5M | -7.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -202.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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 a positive amount in the prior quarter to a negative amount this quarter, and was also more negative than the year-ago quarter. This swing is the strongest observable driver of the free cash flow decline.
The negative operating cash flow directly caused free cash flow to be negative and reduced the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the prior quarter, while operating cash flow shifted from positive to negative, resulting in a negative free cash flow. Capital expenditure was lower than both the preceding quarter and the year-ago quarter, but the drop in operating cash flow was the primary factor behind the negative cash conversion.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased, and the free cash flow margin turned negative. Versus the same quarter one year earlier, revenue was lower, operating cash flow was more negative, and free cash flow margin weakened.
Monitor whether operating cash flow can return to positive levels in the coming quarter, as it is the primary driver of free cash flow.