Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved compared to the prior quarter and the same quarter last year. The free cash flow margin strengthened sequentially but was slightly lower than the year-ago period.
- Revenue increased from the prior quarter and the year-ago quarter, while operating cash flow rose more than proportionally, leading to higher free cash flow. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter, and free cash flow margin improved sequentially but weakened slightly year over year.
- 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, revenue and operating cash flow were higher, free cash flow was higher, but the free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$761.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$812.5M
Cash generated by operations before capital spending.
CapEx
$51.0M
Capital spending and related asset purchases.
FCF margin
43.5%
The share of revenue converted into free cash flow.
TTM FCF yield
5.3%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-05-31 | $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% |
| 2026-02-28 | $1.8B | $812.5M | $51.0M | $761.5M | 43.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 135.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.2B | 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 increased significantly from both the prior quarter and the year-ago quarter, driving a higher free cash flow despite a moderate rise in capital expenditure.
The improvement in operating cash flow was the strongest observable driver of free cash flow this quarter.
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 the year-ago quarter, while operating cash flow rose more than proportionally, leading to higher free cash flow. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter, and free cash flow margin improved sequentially but weakened slightly year over year.
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, revenue and operating cash flow were higher, free cash flow was higher, but the free cash flow margin was slightly lower.
Monitor the trend in capital expenditure, which was lower than the prior quarter but higher than the year-ago quarter, as it directly affects free cash flow.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $39.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 20.4x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.