Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. However, operating cash flow declined sharply from the prior quarter, and capital expenditure rose, resulting in lower free cash flow and a weakened free cash flow margin.
- Revenue was higher, but operating cash flow was significantly lower than the prior quarter and roughly stable compared to a year ago. Capital expenditure increased, so free cash flow and free cash flow margin both declined relative to both comparison periods.
- Compared to the prior quarter, operating cash flow and free cash flow were much lower, while capital expenditure was higher. Versus the same quarter last year, operating cash flow was similar, but capital expenditure was higher, leading to lower free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$384.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$554.0M
Cash generated by operations before capital spending.
CapEx
$170.0M
Capital spending and related asset purchases.
FCF margin
14.8%
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 |
|---|---|---|---|---|---|
| 2025-04-30 | $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% |
| 2026-01-31 | $2.6B | $554.0M | $170.0M | $384.0M | 14.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | 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 decline
Operating cash flow was much lower than the prior quarter, despite higher revenue. This was the most significant change among the cash flow metrics.
The lower operating cash flow directly reduced free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, but operating cash flow was significantly lower than the prior quarter and roughly stable compared to a year ago. Capital expenditure increased, so free cash flow and free cash flow margin both declined relative to both comparison periods.
Compared to the prior quarter, operating cash flow and free cash flow were much lower, while capital expenditure was higher. Versus the same quarter last year, operating cash flow was similar, but capital expenditure was higher, leading to lower free cash flow and margin.
Monitor the level of capital expenditure, as it increased notably from both comparison periods.