Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved sharply from both the prior quarter and the same quarter last year, lifting the free cash flow margin to a higher level. The increase in revenue contributed to stronger cash conversion despite a higher capital expenditure.
- Revenue grew, and operating cash flow rose significantly, resulting in a higher free cash flow margin. Capital expenditure also increased but was more than offset by the expansion in operating cash flow.
- Compared with the prior quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin expanded considerably. Versus the same quarter one year ago, all three cash metrics and the margin were higher, with operating cash flow showing the largest relative improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$934.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$86.2M
Capital spending and related asset purchases.
FCF margin
36.9%
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 |
|---|---|---|---|---|---|
| 2024-10-31 | $2.1B | $1.5B | $44.0M | $1.5B | 68.5% |
| 2025-01-31 | $2.3B | $557.0M | $48.0M | $509.0M | 22.6% |
| 2025-04-30 | $2.3B | $628.0M | $68.0M | $560.0M | 24.5% |
| 2025-07-31 | $2.5B | $1.0B | $86.2M | $934.8M | 36.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 368.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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 Expansion
Operating cash flow increased notably from both the preceding quarter and the year-ago quarter, driving free cash flow higher. This was the strongest observable factor in the quarter's cash conversion performance.
The increase in operating cash flow was the primary reason for the higher free cash flow and improved margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew, and operating cash flow rose significantly, resulting in a higher free cash flow margin. Capital expenditure also increased but was more than offset by the expansion in operating cash flow.
Compared with the prior quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin expanded considerably. Versus the same quarter one year ago, all three cash metrics and the margin were higher, with operating cash flow showing the largest relative improvement.
Monitor the trajectory of capital expenditure, as it increased from both comparison periods and may affect future free cash flow if it continues to rise.