Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were lower than the same quarter last year, but both improved sequentially from the prior quarter. Free cash flow margin weakened year over year yet strengthened compared to the immediately preceding quarter.
- Operating cash flow as a proportion of revenue was lower than the year-ago quarter but higher than the prior quarter. Capital expenditure was lower than both comparison periods, resulting in free cash flow that was lower year over year but higher sequentially, with the free cash flow margin following the same pattern.
- Compared to the same quarter last year, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the immediately preceding quarter, all metrics were higher, with free cash flow margin showing the most notable improvement.
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
$676.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$882.6M
Cash generated by operations before capital spending.
CapEx
$206.0M
Capital spending and related asset purchases.
FCF margin
11.4%
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 |
|---|---|---|---|---|---|
| 2024-05-04 | $4.9B | $368.9M | $136.2M | $232.7M | 4.8% |
| 2024-08-03 | $5.3B | $592.1M | $197.5M | $394.6M | 7.5% |
| 2024-11-02 | $5.1B | $513.4M | $180.4M | $333.0M | 6.6% |
| 2025-02-01 | $5.9B | $882.6M | $206.0M | $676.6M | 11.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Free Cash Flow Recovery
Free cash flow and free cash flow margin improved substantially from the prior quarter, driven by a larger increase in operating cash flow relative to the increase in capital expenditure.
This sequential improvement indicates a stronger cash conversion efficiency in the current quarter compared to the prior quarter.
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 lower than the year-ago quarter but higher than the prior quarter. Capital expenditure was lower than both comparison periods, resulting in free cash flow that was lower year over year but higher sequentially, with the free cash flow margin following the same pattern.
Compared to the same quarter last year, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the immediately preceding quarter, all metrics were higher, with free cash flow margin showing the most notable improvement.
Monitor the trend in operating cash flow relative to revenue, as it declined year over year despite stable revenue levels.