Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and higher than a year ago. Free cash flow margin improved sharply from the prior quarter and was broadly stable compared with the same quarter last year.
- Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that reflected strong cash conversion relative to revenue.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was slightly lower. Compared with the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$84.0M
Capital spending and related asset purchases.
FCF margin
68.2%
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 |
|---|---|---|---|---|---|
| 2025-01-31 | $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% |
| 2025-10-31 | $2.5B | $1.8B | $84.0M | $1.7B | 68.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 505.1% | 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 Strength
Operating cash flow was the strongest observable driver, rising from the prior quarter and from a year ago, while revenue was stable sequentially.
Higher operating cash flow directly supported the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that reflected strong cash conversion relative to revenue.
Compared with the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was slightly lower. Compared with the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was higher.
Monitor the trend in capital expenditure, which was higher than a year ago and may affect future free cash flow conversion.