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 declined from the prior quarter, while free cash flow margin weakened. Compared to the same quarter last year, revenue increased but operating cash flow and free cash flow margin were lower.
- Operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter, resulting in free cash flow that was below both comparison periods.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter last year, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$646.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$122.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$140.4M
Cash generated by operations before capital spending.
CapEx
$17.5M
Capital spending and related asset purchases.
FCF margin
18.4%
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 |
|---|---|---|---|---|---|
| 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% |
| 2026-01-31 | $669.5M | $140.4M | $17.5M | $122.9M | 18.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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 decline
Operating cash flow was lower than both the prior quarter and the year-ago quarter, driven by a net cash outflow from changes in operating assets and liabilities, compared to a net inflow in the year-ago period.
The reduction in operating cash flow directly weakened free cash flow and free cash flow margin relative to both comparison periods.
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 lower than both the prior quarter and the year-ago quarter. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter, resulting in free cash flow that was below both comparison periods.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter last year, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor the change in operating assets and liabilities, which shifted from a net source of cash in the year-ago quarter to a net use of cash in the current quarter.