Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened significantly from the prior quarter and was higher than the year-ago period.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, driving a free cash flow margin that improved sequentially and remained above the prior year's level. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing stronger growth than revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$662.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$718.4M
Cash generated by operations before capital spending.
CapEx
$55.9M
Capital spending and related asset purchases.
FCF margin
44.4%
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 |
|---|---|---|---|---|---|
| 2024-11-30 | $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% |
| 2025-08-31 | $1.5B | $718.4M | $55.9M | $662.5M | 44.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 172.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.1B | 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 substantially higher than both the prior quarter and the year-ago quarter, outpacing revenue growth. This was the strongest observable driver of the free cash flow improvement.
The 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.
Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, driving a free cash flow margin that improved sequentially and remained above the prior year's level. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing stronger growth than revenue.
Monitor the trend in capital expenditure, which was higher than the year-ago quarter but lower than the prior quarter.