Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. However, free cash flow was sharply lower compared to both periods, driven by a significant decline in operating cash flow and a rise in capital expenditure.
- Operating cash flow as a proportion of revenue weakened substantially, falling from the prior quarter and the year-ago quarter. The free cash flow margin contracted to a minimal level, reflecting the combined effect of lower cash generation from operations and higher capital spending.
- Compared to the immediately preceding quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened; capital expenditure was higher. Versus the same quarter one year earlier, revenue was slightly higher, but operating cash flow, free cash flow, and free cash flow margin were all lower, with capital expenditure also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$15.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$222.0M
Cash generated by operations before capital spending.
CapEx
$207.0M
Capital spending and related asset purchases.
FCF margin
0.1%
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 |
|---|---|---|---|---|---|
| 2024-11-30 | $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% |
| 2025-08-31 | $11.7B | $222.0M | $207.0M | $15.0M | 0.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 2.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 compared to both the prior quarter and the year-ago quarter. The filing notes that the decrease was driven by lower net income adjusted for non-cash items and changes in working capital components, partially offset by favorable changes in accounts receivable and inventories.
The lower operating cash flow was the strongest observable driver of the sharp reduction in free cash flow.
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 weakened substantially, falling from the prior quarter and the year-ago quarter. The free cash flow margin contracted to a minimal level, reflecting the combined effect of lower cash generation from operations and higher capital spending.
Compared to the immediately preceding quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened; capital expenditure was higher. Versus the same quarter one year earlier, revenue was slightly higher, but operating cash flow, free cash flow, and free cash flow margin were all lower, with capital expenditure also higher.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the weakened free cash flow.