Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter and was higher than the same quarter last year, driven by a significant increase in operating cash flow. The free cash flow margin strengthened to a level well above both comparison periods.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose substantially, leading to a much higher free cash flow and an improved free cash flow margin, as capital expenditure was lower than the prior quarter and slightly below the year-ago level.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, with operating cash flow higher and capital expenditure lower. Versus the same quarter one year earlier, free cash flow and margin were also higher, driven by higher operating cash flow while capital expenditure was slightly lower.
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
$632.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$671.0M
Cash generated by operations before capital spending.
CapEx
$38.6M
Capital spending and related asset purchases.
FCF margin
36.3%
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 |
|---|---|---|---|---|---|
| 2024-10-31 | $1.6B | $562.8M | $20.7M | $542.1M | 33.1% |
| 2025-01-31 | $1.5B | -$67.5M | $40.7M | -$108.2M | -7.4% |
| 2025-04-30 | $1.6B | $275.4M | $55.6M | $219.8M | 13.7% |
| 2025-07-31 | $1.7B | $671.0M | $38.6M | $632.4M | 36.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 260.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.8B | 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 Surge
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, while revenue grew modestly. This was the strongest observable driver of the quarter's free cash flow improvement.
The surge in operating cash flow directly lifted free cash flow and margin to levels well above recent comparisons.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose substantially, leading to a much higher free cash flow and an improved free cash flow margin, as capital expenditure was lower than the prior quarter and slightly below the year-ago level.
Compared to the immediately preceding quarter, free cash flow and margin were higher, with operating cash flow higher and capital expenditure lower. Versus the same quarter one year earlier, free cash flow and margin were also higher, driven by higher operating cash flow while capital expenditure was slightly lower.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.