Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened sharply this quarter compared to both the prior quarter and the same quarter last year. The decline was driven by lower operating cash flow, while capital expenditure remained relatively stable.
- Revenue was slightly lower than the prior quarter and notably lower than a year ago. Operating cash flow fell substantially, resulting in a much lower free cash flow margin compared to both comparison periods.
- Compared to the immediately preceding quarter, revenue was slightly lower, operating cash flow was significantly lower, and free cash flow was substantially lower. Versus the same quarter one year earlier, all metrics were lower, with operating cash flow and free cash flow showing the largest declines.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$363.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$463.0M
Cash generated by operations before capital spending.
CapEx
$100.0M
Capital spending and related asset purchases.
FCF margin
3.3%
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 |
|---|---|---|---|---|---|
| 2024-08-31 | $11.6B | $394.0M | $120.0M | $274.0M | 2.4% |
| 2024-11-30 | $12.4B | $1.0B | $129.0M | $920.0M | 7.4% |
| 2025-02-28 | $11.3B | $1.8B | $81.0M | $1.7B | 15.2% |
| 2025-05-31 | $11.1B | $463.0M | $100.0M | $363.0M | 3.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 172.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$497.0M | 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 decreased sharply from both the prior quarter and the year-ago quarter. The filing context indicates that the full-year decrease in cash from operations was driven by lower net income adjusted for non-cash items and changes in working capital components, including inventories.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter and notably lower than a year ago. Operating cash flow fell substantially, resulting in a much lower free cash flow margin compared to both comparison periods.
Compared to the immediately preceding quarter, revenue was slightly lower, operating cash flow was significantly lower, and free cash flow was substantially lower. Versus the same quarter one year earlier, all metrics were lower, with operating cash flow and free cash flow showing the largest declines.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the weakened free cash flow this quarter.