Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened significantly versus the same quarter last year, despite revenue being stable. Operating cash flow was substantially lower, leading to a much lower free cash flow margin.
- Revenue was stable compared to the prior year, but operating cash flow was sharply lower, resulting in a much lower free cash flow. Capital expenditure was higher year-over-year, further reducing free cash flow. The free cash flow margin decreased markedly.
- Compared to the immediately preceding quarter, revenue was higher and operating cash flow improved substantially, driving a significant increase in free cash flow and margin. Versus the same quarter one year earlier, revenue was stable, but operating cash flow and free cash flow were both significantly lower, with a much lower margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$386.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$579.0M
Cash generated by operations before capital spending.
CapEx
$193.0M
Capital spending and related asset purchases.
FCF margin
3.1%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-11-30 | $12.4B | $579.0M | $193.0M | $386.0M | 3.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 48.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.0B | 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 substantially lower than the prior year, driven by lower net income and unfavorable changes in working capital, particularly accounts payable and receivable.
This decline reduced free cash flow and margin significantly compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior year, but operating cash flow was sharply lower, resulting in a much lower free cash flow. Capital expenditure was higher year-over-year, further reducing free cash flow. The free cash flow margin decreased markedly.
Compared to the immediately preceding quarter, revenue was higher and operating cash flow improved substantially, driving a significant increase in free cash flow and margin. Versus the same quarter one year earlier, revenue was stable, but operating cash flow and free cash flow were both significantly lower, with a much lower margin.
Monitor the trends in accounts payable and accounts receivable, as the company attributed changes in operating cash flow to these working capital components.