Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by a significant increase in operating cash flow. Compared to the same quarter last year, free cash flow was lower despite similar revenue.
- Revenue was stable compared to the prior year quarter, while operating cash flow was lower, resulting in a weakened free cash flow margin. The conversion from revenue to free cash flow improved markedly from the preceding quarter due to higher operating cash flow.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were substantially higher, driven by a much higher operating cash flow. Versus the same quarter one year earlier, free cash flow and free cash flow margin were lower, as operating cash flow declined while revenue remained similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$338.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$385.0M
Cash generated by operations before capital spending.
CapEx
$47.0M
Capital spending and related asset purchases.
FCF margin
20.6%
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 |
|---|---|---|---|---|---|
| 2024-04-26 | $1.7B | $613.0M | $46.0M | $567.0M | 34.0% |
| 2024-07-26 | $1.5B | $341.0M | $41.0M | $300.0M | 19.5% |
| 2024-10-25 | $1.7B | $105.0M | $45.0M | $60.0M | 3.6% |
| 2025-01-24 | $1.6B | $385.0M | $47.0M | $338.0M | 20.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 113.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$483.0M | 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 Recovery
Operating cash flow increased substantially from the prior quarter, lifting free cash flow and margin. This was the strongest observable driver of the quarter's performance.
The improvement in operating cash flow was the key factor behind the sequential rebound in free cash flow.
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 quarter, while operating cash flow was lower, resulting in a weakened free cash flow margin. The conversion from revenue to free cash flow improved markedly from the preceding quarter due to higher operating cash flow.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were substantially higher, driven by a much higher operating cash flow. Versus the same quarter one year earlier, free cash flow and free cash flow margin were lower, as operating cash flow declined while revenue remained similar.
Monitor the trend in operating cash flow, as it was the primary driver of the quarter's free cash flow change.