Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter last year and higher than the prior quarter. Free cash flow margin improved significantly from both periods, driven by a substantial increase in operating cash flow and a reduction in capital expenditure.
- Operating cash flow rose sharply, while capital expenditure declined, leading to a strong free cash flow. The resulting free cash flow margin was higher than both the prior quarter and the year-ago quarter, reflecting an improved conversion of revenue into cash.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow and free cash flow improved substantially, and capital expenditure was lower. Versus the same quarter one year earlier, revenue was stable, operating cash flow and free cash flow were higher, and capital expenditure was lower.
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
$640.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$675.0M
Cash generated by operations before capital spending.
CapEx
$35.0M
Capital spending and related asset purchases.
FCF margin
37.0%
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 |
|---|---|---|---|---|---|
| 2024-07-26 | $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% |
| 2025-04-25 | $1.7B | $675.0M | $35.0M | $640.0M | 37.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 188.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$493.0M | 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 Improvement
Operating cash flow increased significantly from the prior quarter and also rose compared to the year-ago period, while capital expenditure declined. This combination produced the highest free cash flow margin among the three periods.
The strong operating cash flow was the primary factor behind the free cash flow margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose sharply, while capital expenditure declined, leading to a strong free cash flow. The resulting free cash flow margin was higher than both the prior quarter and the year-ago quarter, reflecting an improved conversion of revenue into cash.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow and free cash flow improved substantially, and capital expenditure was lower. Versus the same quarter one year earlier, revenue was stable, operating cash flow and free cash flow were higher, and capital expenditure was lower.
Monitor whether the elevated operating cash flow level can be sustained relative to stable revenue.