Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus the same quarter last year, driven by higher operating cash flow and lower capital expenditure. Compared to the prior quarter, free cash flow and margin weakened as operating cash flow declined.
- Revenue was slightly higher than both the prior quarter and the year-ago quarter. Operating cash flow converted into free cash flow after modest capital expenditure, yielding a free cash flow margin that was higher than a year ago but lower than the prior quarter.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, and free cash flow margin weakened. Versus the same quarter last year, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$661.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$193.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$202.9M
Cash generated by operations before capital spending.
CapEx
$9.1M
Capital spending and related asset purchases.
FCF margin
25.8%
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 |
|---|---|---|---|---|---|
| 2025-01-31 | $615.4M | $159.1M | $21.4M | $137.7M | 22.4% |
| 2025-04-30 | $682.9M | $119.2M | $16.0M | $103.1M | 15.1% |
| 2025-07-31 | $741.5M | $238.0M | $11.6M | $226.4M | 30.5% |
| 2025-10-31 | $751.8M | $202.9M | $9.1M | $193.9M | 25.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 127.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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 strength versus last year
Operating cash flow was substantially higher than the same quarter last year, more than offsetting a modest increase in revenue and a decline in capital expenditure. This drove a significant improvement in free cash flow and margin year over year.
The year-over-year improvement in free cash flow was primarily attributable to the higher operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than both the prior quarter and the year-ago quarter. Operating cash flow converted into free cash flow after modest capital expenditure, yielding a free cash flow margin that was higher than a year ago but lower than the prior quarter.
Compared to the prior quarter, operating cash flow and free cash flow were lower, and free cash flow margin weakened. Versus the same quarter last year, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower.
Monitor whether operating cash flow can sustain or improve from the current level, as it was the primary factor behind the sequential decline in free cash flow.