Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but operating cash flow declined sharply, leading to negative free cash flow. Capital expenditure rose sequentially, while free cash flow margin turned negative versus positive margins in both comparison periods.
- Revenue was higher, yet operating cash flow fell significantly, resulting in a free cash flow deficit. The free cash flow margin dropped from positive levels in both the prior quarter and the year-ago quarter to a negative figure, indicating weaker cash conversion efficiency.
- Compared to the immediately preceding quarter, revenue improved but operating cash flow and free cash flow both declined, with free cash flow turning from positive to negative. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin all weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$551.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$45.9M
Cash generated by operations before capital spending.
CapEx
$48.3M
Capital spending and related asset purchases.
FCF margin
-0.1%
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 |
|---|---|---|---|---|---|
| 2024-08-31 | $1.7B | $161.7M | $59.0M | $102.7M | 6.1% |
| 2024-11-30 | $1.8B | $458.7M | $85.6M | $373.1M | 20.8% |
| 2025-02-28 | $1.6B | $115.5M | $37.1M | $78.4M | 4.9% |
| 2025-05-31 | $1.7B | $45.9M | $48.3M | -$2.4M | -0.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.7B | 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 Decline
Operating cash flow decreased substantially from both the prior quarter and the year-ago quarter, despite higher revenue. This decline is the strongest observable factor behind the negative free cash flow.
The drop in operating cash flow more than offset the revenue increase, turning free cash flow negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, yet operating cash flow fell significantly, resulting in a free cash flow deficit. The free cash flow margin dropped from positive levels in both the prior quarter and the year-ago quarter to a negative figure, indicating weaker cash conversion efficiency.
Compared to the immediately preceding quarter, revenue improved but operating cash flow and free cash flow both declined, with free cash flow turning from positive to negative. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin all weakened.
Monitor whether operating cash flow can recover from its current low level relative to revenue, as it is the primary driver of free cash flow.