Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was stable compared to the same quarter last year, while the margin narrowed slightly. Sequentially, cash conversion improved sharply as operating cash flow grew faster than revenue.
- Revenue increased sequentially, and operating cash flow rose at a faster pace, leading to a higher free cash flow and a significantly improved free cash flow margin. Capital expenditure also increased but remained a smaller proportion of operating cash flow.
- Compared to the prior quarter, free cash flow and margin were substantially higher, driven by a larger increase in operating cash flow relative to revenue. Versus the same quarter last year, free cash flow was similar, while the margin was slightly lower due to a higher capital expenditure relative to operating cash flow.
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
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$235.0M
Capital spending and related asset purchases.
FCF margin
32.3%
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 |
|---|---|---|---|---|---|
| 2024-04-28 | $2.2B | $127.5M | $130.7M | -$3.2M | -0.1% |
| 2024-07-28 | $2.4B | $443.1M | $145.1M | $298.1M | 12.6% |
| 2024-10-27 | $2.4B | $300.7M | $178.5M | $122.2M | 5.1% |
| 2025-02-02 | $3.6B | $1.4B | $235.0M | $1.2B | 32.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 155.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.5% | 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.
Strong operating cash flow growth
Operating cash flow increased substantially from the prior quarter, outpacing revenue growth and driving a significant improvement in free cash flow and margin.
This was the strongest observable driver of the quarter's cash conversion improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased sequentially, and operating cash flow rose at a faster pace, leading to a higher free cash flow and a significantly improved free cash flow margin. Capital expenditure also increased but remained a smaller proportion of operating cash flow.
Compared to the prior quarter, free cash flow and margin were substantially higher, driven by a larger increase in operating cash flow relative to revenue. Versus the same quarter last year, free cash flow was similar, while the margin was slightly lower due to a higher capital expenditure relative to operating cash flow.
Monitor the trend in capital expenditure relative to operating cash flow, as a higher ratio this quarter compared to last year contributed to a slightly lower free cash flow margin.