Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable compared to both the prior quarter and the same quarter last year. Operating cash flow improved significantly, driving a shift from slightly negative free cash flow to positive and higher than the year-ago period.
- Revenue held steady while operating cash flow increased markedly. Capital expenditure was slightly higher than the prior quarter but lower than a year ago, resulting in a much stronger free cash flow and a higher free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow turned from slightly negative to positive, with an improved margin. Versus the same quarter one year earlier, free cash flow and margin both showed improvement due to higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$655.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$206.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$258.8M
Cash generated by operations before capital spending.
CapEx
$52.7M
Capital spending and related asset purchases.
FCF margin
11.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-08-31 | $1.7B | $258.8M | $52.7M | $206.1M | 11.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.8B | 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 Strength
The primary driver was a substantial increase in operating cash flow compared to both the prior quarter and the year-ago period, which more than offset a slight rise in capital expenditure from the previous quarter.
This operating cash flow surge enabled a transition from a negative to a positive free cash flow position with an improved margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue held steady while operating cash flow increased markedly. Capital expenditure was slightly higher than the prior quarter but lower than a year ago, resulting in a much stronger free cash flow and a higher free cash flow margin.
Compared to the immediately preceding quarter, free cash flow turned from slightly negative to positive, with an improved margin. Versus the same quarter one year earlier, free cash flow and margin both showed improvement due to higher operating cash flow and lower capital expenditure.
Monitor the sustainability of operating cash flow levels after a significant sequential improvement.