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 sequentially and year-over-year, reflecting higher cash generation relative to sales.
- Operating cash flow as a proportion of revenue was higher than both the preceding quarter and the year-ago quarter, while capital expenditure was lower in absolute terms. This combination drove free cash flow higher and expanded the free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were also higher, with the free cash flow margin showing notable strengthening.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$713.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$170.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$180.7M
Cash generated by operations before capital spending.
CapEx
$10.2M
Capital spending and related asset purchases.
FCF margin
23.0%
The share of revenue converted into free cash flow.
TTM FCF yield
4.5%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-07-31 | $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% |
| 2026-04-30 | $740.8M | $180.7M | $10.2M | $170.5M | 23.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 145.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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 increased substantially compared to both the prior quarter and the same quarter last year, outpacing revenue growth. This was the strongest observable driver of the improvement in free cash flow and margin.
Higher operating cash flow directly lifted free cash flow and expanded the 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 as a proportion of revenue was higher than both the preceding quarter and the year-ago quarter, while capital expenditure was lower in absolute terms. This combination drove free cash flow higher and expanded the free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were also higher, with the free cash flow margin showing notable strengthening.
Monitor the trend in capital expenditure, which decreased from both the prior quarter and the year-ago period, as a sustained lower level may affect future cash conversion.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $16.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.5% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 24.9x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.