Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. Free cash flow margin weakened compared to both periods, as operating cash flow did not keep pace with revenue growth and capital expenditure rose.
- Operating cash flow as a proportion of revenue declined from the prior quarter and was slightly lower than a year ago, while capital expenditure increased. This resulted in a free cash flow margin that was lower than both comparison periods.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow was lower, capital expenditure was higher, and free cash flow was lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was slightly higher, capital expenditure was higher, and free cash flow was 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
$214.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$332.9M
Cash generated by operations before capital spending.
CapEx
$118.8M
Capital spending and related asset purchases.
FCF margin
11.3%
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 |
|---|---|---|---|---|---|
| 2024-08-03 | $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% |
| 2025-05-03 | $1.9B | $332.9M | $118.8M | $214.1M | 11.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 120.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure rose compared to both the prior quarter and the same quarter last year, while operating cash flow did not increase proportionally. This was the strongest observable factor behind the decline in free cash flow and free cash flow margin.
Higher capital expenditure absorbed a larger share of operating cash flow, reducing free cash flow despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue declined from the prior quarter and was slightly lower than a year ago, while capital expenditure increased. This resulted in a free cash flow margin that was lower than both comparison periods.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow was lower, capital expenditure was higher, and free cash flow was lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was slightly higher, capital expenditure was higher, and free cash flow was lower.
Monitor the trend in capital expenditure relative to operating cash flow, as higher spending combined with lower cash conversion compressed free cash flow.