Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both rose compared to the prior quarter. Free cash flow margin improved versus the immediate prior quarter but weakened compared to the same quarter one year earlier.
- Operating cash flow increased while capital expenditure also rose, resulting in higher free cash flow. The free cash flow margin improved from the prior quarter, indicating a stronger conversion of revenue into free cash flow.
- Compared with the preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Relative to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher, but the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$508.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$582.3M
Cash generated by operations before capital spending.
CapEx
$73.5M
Capital spending and related asset purchases.
FCF margin
24.5%
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 |
|---|---|---|---|---|---|
| 2025-02-01 | $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% |
| 2025-11-01 | $2.1B | $582.3M | $73.5M | $508.8M | 24.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 26.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.8B | 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 Growth
Operating cash flow rose compared with both the prior quarter and the year-ago quarter. This was the strongest observable factor supporting the increase in free cash flow.
Higher operating cash flow directly contributed to the sequential improvement in free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased while capital expenditure also rose, resulting in higher free cash flow. The free cash flow margin improved from the prior quarter, indicating a stronger conversion of revenue into free cash flow.
Compared with the preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Relative to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher, but the free cash flow margin was lower.
Monitor the trend in free cash flow margin, which improved sequentially but remains below the year-ago level.