Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter last year, while operating cash flow improved sequentially but fell year over year. Free cash flow margin strengthened compared to the prior quarter but weakened relative to the same quarter a year ago.
- Operating cash flow as a share of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased from both comparison periods, resulting in free cash flow that improved sequentially but declined year over year.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to a stronger free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$464.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$137.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$159.1M
Cash generated by operations before capital spending.
CapEx
$21.4M
Capital spending and related asset purchases.
FCF margin
22.4%
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 |
|---|---|---|---|---|---|
| 2024-04-30 | $650.6M | $122.6M | $14.4M | $108.2M | 16.6% |
| 2024-07-31 | $661.6M | $164.8M | $21.9M | $143.0M | 21.6% |
| 2024-10-31 | $744.5M | $96.4M | $20.6M | $75.8M | 10.2% |
| 2025-01-31 | $615.4M | $159.1M | $21.4M | $137.7M | 22.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 145.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.9B | 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 conversion
Operating cash flow improved sequentially despite lower revenue, but declined year over year. The filing notes that net income and non-cash items decreased compared to the same quarter last year, while changes in operating assets and liabilities provided a modest increase.
The sequential improvement in operating cash flow supported free cash flow, but the year-over-year decline in both operating cash flow and free cash flow margin signals reduced cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased from both comparison periods, resulting in free cash flow that improved sequentially but declined year over year.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to a stronger free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter.