Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to a year ago, but operating cash flow and free cash flow were negative, resulting in a negative free cash flow margin. The cash conversion weakened sharply from the prior quarter, though it improved relative to the same quarter last year.
- Revenue was unchanged from a year ago, yet operating cash flow was negative and capital expenditure was similar, producing negative free cash flow and a negative margin. The cash conversion was weaker than the prior quarter but better than the same quarter last year.
- Compared to the prior quarter, revenue was lower, operating cash flow turned from positive to negative, and free cash flow shifted from a large positive to a negative figure. Versus the same quarter a year ago, revenue was stable, operating cash flow was less negative, and free cash flow was also less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$108.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$67.5M
Cash generated by operations before capital spending.
CapEx
$40.7M
Capital spending and related asset purchases.
FCF margin
-7.4%
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 |
|---|---|---|---|---|---|
| 2024-04-30 | $1.5B | $476.6M | $38.4M | $438.2M | 30.1% |
| 2024-07-31 | $1.5B | $455.4M | $40.0M | $415.4M | 27.2% |
| 2024-10-31 | $1.6B | $562.8M | $20.7M | $542.1M | 33.1% |
| 2025-01-31 | $1.5B | -$67.5M | $40.7M | -$108.2M | -7.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -36.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Negative Operating Cash Flow
Operating cash flow was negative this quarter, a sharp reversal from the prior quarter's large positive figure and a slight improvement from the negative figure a year ago. This was the strongest observable driver of the negative free cash flow.
The negative operating cash flow directly caused free cash flow to be negative, despite capital expenditure being similar to a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from a year ago, yet operating cash flow was negative and capital expenditure was similar, producing negative free cash flow and a negative margin. The cash conversion was weaker than the prior quarter but better than the same quarter last year.
Compared to the prior quarter, revenue was lower, operating cash flow turned from positive to negative, and free cash flow shifted from a large positive to a negative figure. Versus the same quarter a year ago, revenue was stable, operating cash flow was less negative, and free cash flow was also less negative.
Monitor whether operating cash flow returns to positive levels in the coming quarter, as it was negative this quarter despite stable revenue.