Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive from a year ago, supporting a free cash flow margin that improved from negative to positive. Compared to the prior quarter, both operating cash flow and free cash flow were lower, reflecting a seasonal decline in revenue.
- Revenue was higher than a year ago, and operating cash flow improved from negative to positive, resulting in positive free cash flow and a positive free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow improved from negative to positive, free cash flow improved from negative to positive, and free cash flow margin improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$87.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$214.4M
Cash generated by operations before capital spending.
CapEx
$127.4M
Capital spending and related asset purchases.
FCF margin
3.5%
The share of revenue converted into free cash flow.
TTM FCF yield
10.0%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-08-03 | $2.5B | $328.7M | $177.9M | $150.8M | 6.0% |
| 2025-11-02 | $2.6B | $249.9M | $167.4M | $82.4M | 3.2% |
| 2026-02-01 | $3.6B | $1.1B | $183.2M | $959.7M | 26.4% |
| 2026-05-03 | $2.5B | $214.4M | $127.4M | $87.1M | 3.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 44.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | 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 Turnaround
Operating cash flow shifted from negative a year ago to positive this quarter, which was the primary factor enabling free cash flow to turn positive. This improvement occurred even as capital expenditure was lower than both comparison periods.
The positive operating cash flow directly drove free cash flow from negative to positive, reversing the year-ago deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than a year ago, and operating cash flow improved from negative to positive, resulting in positive free cash flow and a positive free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow improved from negative to positive, free cash flow improved from negative to positive, and free cash flow margin improved from negative to positive.
Monitor whether operating cash flow can sustain its positive level given the sequential decline from the prior quarter.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $12.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | 10.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.