Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue grew in FY2025 Q2, but free cash flow declined sharply due to lower operating cash flow. The free cash flow margin decreased significantly compared to both the prior quarter and the same quarter last year.
- Revenue increased while operating cash flow decreased, leading to weaker cash conversion. Capital expenditure remained stable.
- Compared to the prior quarter, operating cash flow and free cash flow were much lower despite higher revenue. Versus the same quarter last year, free cash flow also declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$509.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$557.0M
Cash generated by operations before capital spending.
CapEx
$48.0M
Capital spending and related asset purchases.
FCF margin
22.6%
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 |
|---|---|---|---|---|---|
| 2024-04-30 | $2.0B | $528.9M | $37.4M | $491.5M | 24.8% |
| 2024-07-31 | $2.2B | $512.7M | $47.4M | $465.3M | 21.3% |
| 2024-10-31 | $2.1B | $1.5B | $44.0M | $1.5B | 68.5% |
| 2025-01-31 | $2.3B | $557.0M | $48.0M | $509.0M | 22.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 190.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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 Contraction
Operating cash flow decreased substantially from the prior quarter and from the year-ago period, despite revenue growth. This drove a sharp reduction in free cash flow and margin.
If the trend continues, free cash flow generation may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow decreased, leading to weaker cash conversion. Capital expenditure remained stable.
Compared to the prior quarter, operating cash flow and free cash flow were much lower despite higher revenue. Versus the same quarter last year, free cash flow also declined.
Monitor the trajectory of operating cash flow relative to revenue.