Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened versus the prior quarter and was stable relative to the year-ago period.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter. Capital expenditure was lower than the prior quarter but similar to the year-ago quarter, resulting in free cash flow and free cash flow margin that improved sequentially and were stable year over year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$414.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$461.6M
Cash generated by operations before capital spending.
CapEx
$47.5M
Capital spending and related asset purchases.
FCF margin
20.6%
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 |
|---|---|---|---|---|---|
| 2024-11-02 | $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% |
| 2025-08-02 | $2.0B | $461.6M | $47.5M | $414.1M | 20.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 212.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.2B | 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 Improvement
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, supporting a higher free cash flow. This improvement occurred alongside higher revenue.
The stronger operating cash flow was the primary observable factor behind the sequential and year-over-year increase in free cash flow.
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 was higher than both the prior quarter and the year-ago quarter. Capital expenditure was lower than the prior quarter but similar to the year-ago quarter, resulting in free cash flow and free cash flow margin that improved sequentially and were stable year over year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was slightly lower.
Monitor the level of capital expenditure, as it decreased significantly from the prior quarter but remained close to the year-ago level.