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 but declined from the same quarter last year. The cash conversion rate strengthened significantly compared to the preceding period.
- Revenue was stable versus the prior quarter and higher than a year ago. Operating cash flow increased substantially from the preceding quarter but was lower than the year-ago quarter, leading to a free cash flow margin that improved from the prior period and weakened from the same quarter last year.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by a much higher operating cash flow with slightly lower capital expenditure. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were lower, as operating cash flow declined while capital expenditure was broadly stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$271.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$317.0M
Cash generated by operations before capital spending.
CapEx
$46.0M
Capital spending and related asset purchases.
FCF margin
15.8%
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 |
|---|---|---|---|---|---|
| 2025-04-25 | $1.7B | $675.0M | $35.0M | $640.0M | 37.0% |
| 2025-07-25 | $1.6B | $673.0M | $53.0M | $620.0M | 39.8% |
| 2025-10-24 | $1.7B | $127.0M | $49.0M | $78.0M | 4.6% |
| 2026-01-23 | $1.7B | $317.0M | $46.0M | $271.0M | 15.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 81.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$857.0M | 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, driving a significant improvement in free cash flow and free cash flow margin. This was the strongest observable driver of the quarter's cash conversion performance.
The higher operating cash flow more than offset the modest capital expenditure, resulting in a much stronger free cash flow generation compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter and higher than a year ago. Operating cash flow increased substantially from the preceding quarter but was lower than the year-ago quarter, leading to a free cash flow margin that improved from the prior period and weakened from the same quarter last year.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by a much higher operating cash flow with slightly lower capital expenditure. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were lower, as operating cash flow declined while capital expenditure was broadly stable.
Monitor the trajectory of operating cash flow, which was the primary factor behind the sequential improvement but remained below the year-ago level.