Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Free cash flow margin weakened from the prior quarter but improved relative to the same quarter one year earlier.
- Revenue remained stable sequentially, while operating cash flow decreased and capital expenditure increased slightly, leading to lower free cash flow and a weaker margin. Compared to the same quarter last year, operating cash flow and free cash flow were higher, and the margin improved despite higher capital expenditure.
- Sequentially, revenue was stable, operating cash flow and free cash flow were lower, capital expenditure was higher, and the free cash flow margin weakened. Year over year, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$382.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$444.9M
Cash generated by operations before capital spending.
CapEx
$62.1M
Capital spending and related asset purchases.
FCF margin
25.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-11-30 | $1.5B | $444.9M | $62.1M | $382.8M | 25.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.5B | 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 decreased from the prior quarter while revenue was unchanged, resulting in a lower free cash flow margin. This was the most significant observable change in the cash conversion metrics.
The sequential drop in operating cash flow was the primary factor behind the weakened free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable sequentially, while operating cash flow decreased and capital expenditure increased slightly, leading to lower free cash flow and a weaker margin. Compared to the same quarter last year, operating cash flow and free cash flow were higher, and the margin improved despite higher capital expenditure.
Sequentially, revenue was stable, operating cash flow and free cash flow were lower, capital expenditure was higher, and the free cash flow margin weakened. Year over year, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, and the margin improved.
Monitor operating cash flow given its sequential decline while revenue remained stable.