Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sequentially from the prior quarter but improved compared to the same quarter last year. Operating cash flow declined while capital expenditure increased, resulting in lower free cash flow relative to the immediately preceding quarter.
- Revenue was lower than the prior quarter but higher than the year-ago period. Operating cash flow and free cash flow both declined sequentially, and the free cash flow margin narrowed, though it remained above the level of one year earlier.
- Compared to the prior quarter, free cash flow and margin decreased sharply, driven by a material reduction in operating cash flow. Relative to the year-ago quarter, free cash flow and margin improved, supported by higher revenue and operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$283.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$343.8M
Cash generated by operations before capital spending.
CapEx
$60.5M
Capital spending and related asset purchases.
FCF margin
20.5%
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 |
|---|---|---|---|---|---|
| 2024-08-31 | $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% |
| 2025-05-31 | $1.4B | $343.8M | $60.5M | $283.3M | 20.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 95.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.3B | 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 fell sharply from the prior quarter, while capital expenditure rose. This combination drove a significant sequential decline in free cash flow and margin.
The lower operating cash flow was the primary factor behind the weakened free cash flow generation this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than the year-ago period. Operating cash flow and free cash flow both declined sequentially, and the free cash flow margin narrowed, though it remained above the level of one year earlier.
Compared to the prior quarter, free cash flow and margin decreased sharply, driven by a material reduction in operating cash flow. Relative to the year-ago quarter, free cash flow and margin improved, supported by higher revenue and operating cash flow.
Monitor the magnitude of capital expenditure, which increased both sequentially and year-over-year, as it directly reduces free cash flow.