Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and operating cash flow weakened sharply in the current quarter even though revenue remained stable. Cash conversion deteriorated markedly compared with both the prior quarter and the same quarter last year.
- Revenue was roughly flat with the prior quarter and higher than a year ago, but operating cash flow contracted severely, resulting in a very low free cash flow margin. Capital expenditure was also lower, but the drop in operating cash flow was the dominant factor.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow both fell significantly; the same weakening was observed against the year-ago quarter. The free cash flow margin dropped from substantial levels in both prior periods to a minimal level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$680.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$18.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$50.9M
Cash generated by operations before capital spending.
CapEx
$32.5M
Capital spending and related asset purchases.
FCF margin
1.0%
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 | $1.7B | $45.9M | $48.3M | -$2.4M | -0.1% |
| 2025-08-31 | $1.7B | $258.8M | $52.7M | $206.1M | 11.9% |
| 2025-11-30 | $1.9B | $542.0M | $83.7M | $458.3M | 24.8% |
| 2026-02-28 | $1.9B | $50.9M | $32.5M | $18.4M | 1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sharp contraction in operating cash flow
Operating cash flow in the current quarter was far lower than both the prior quarter and the year-ago quarter, making it the primary driver behind the decline in free cash flow.
If operating cash flow does not improve, free cash flow will remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was roughly flat with the prior quarter and higher than a year ago, but operating cash flow contracted severely, resulting in a very low free cash flow margin. Capital expenditure was also lower, but the drop in operating cash flow was the dominant factor.
Compared with the immediately preceding quarter, operating cash flow and free cash flow both fell significantly; the same weakening was observed against the year-ago quarter. The free cash flow margin dropped from substantial levels in both prior periods to a minimal level.
Monitor whether operating cash flow can recover toward historical norms, as its current level is far below recent performance.