Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to both the prior quarter and the same quarter last year. Free cash flow margin weakened across both comparisons as free cash flow declined while revenue increased.
- Operating cash flow was lower than both the preceding quarter and the year-ago quarter. With capital expenditure also lower, the resulting free cash flow was reduced, and the free cash flow margin narrowed as revenue grew faster than cash generation.
- Compared to the immediately preceding quarter, revenue was higher but free cash flow and free cash flow margin were both lower. Versus the same quarter one year earlier, revenue was again higher while free cash flow and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$444.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$514.0M
Cash generated by operations before capital spending.
CapEx
$69.9M
Capital spending and related asset purchases.
FCF margin
24.4%
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 |
|---|---|---|---|---|---|
| 2024-05-04 | $1.2B | $324.5M | $91.5M | $233.0M | 20.1% |
| 2024-08-03 | $1.3B | $306.4M | $48.2M | $258.2M | 20.3% |
| 2024-11-02 | $1.5B | $536.3M | $75.0M | $461.3M | 30.4% |
| 2025-02-01 | $1.8B | $514.0M | $69.9M | $444.1M | 24.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 221.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash generation lagged revenue growth
Revenue increased in both sequential and year-over-year comparisons, yet operating cash flow was lower in both periods. This drove a decline in free cash flow and a narrower free cash flow margin.
The company converted a smaller proportion of revenue into free cash flow compared to both the prior quarter and the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both the preceding quarter and the year-ago quarter. With capital expenditure also lower, the resulting free cash flow was reduced, and the free cash flow margin narrowed as revenue grew faster than cash generation.
Compared to the immediately preceding quarter, revenue was higher but free cash flow and free cash flow margin were both lower. Versus the same quarter one year earlier, revenue was again higher while free cash flow and free cash flow margin were lower.
Monitor the trajectory of operating cash flow relative to revenue, as cash conversion weakened despite higher sales.