Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, supported by higher operating cash flow. The free cash flow margin strengthened versus the previous quarter and remained stable relative to the year-ago period.
- Revenue increased from the prior quarter, and operating cash flow rose more than proportionally, leading to a higher free cash flow margin. Capital expenditure was slightly higher than both comparison periods, but the increase in operating cash flow more than offset this.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue and free cash flow were higher, while the free cash flow margin was 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
$667.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$716.0M
Cash generated by operations before capital spending.
CapEx
$48.7M
Capital spending and related asset purchases.
FCF margin
45.5%
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 |
|---|---|---|---|---|---|
| 2024-05-31 | $1.3B | $221.7M | $41.3M | $180.4M | 14.4% |
| 2024-08-31 | $1.3B | $546.1M | $35.6M | $510.5M | 39.9% |
| 2024-11-30 | $1.3B | $295.0M | $47.0M | $248.0M | 19.4% |
| 2025-02-28 | $1.5B | $716.0M | $48.7M | $667.3M | 45.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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 Growth
Operating cash flow increased substantially from the prior quarter and was also higher than the same quarter last year. This was the strongest observable driver of the free cash flow improvement.
Higher operating cash flow directly lifted free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, and operating cash flow rose more than proportionally, leading to a higher free cash flow margin. Capital expenditure was slightly higher than both comparison periods, but the increase in operating cash flow more than offset this.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue and free cash flow were higher, while the free cash flow margin was stable.
Monitor the trend in capital expenditure, as it was higher in the current quarter compared to both the prior quarter and the year-ago quarter.