Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose sharply from both the prior quarter and the same quarter last year, while free cash flow margin narrowed compared to both periods. Operating cash flow increased year over year but decreased slightly from the preceding quarter.
- Revenue increased, yet operating cash flow declined sequentially, leading to a lower free cash flow margin. Capital expenditure was slightly reduced from the prior quarter but remained higher than a year ago.
- Compared to the prior quarter, free cash flow and margin both weakened despite higher revenue. Versus the same quarter last year, free cash flow and operating cash flow improved, but margin declined due to a proportionally larger increase in revenue.
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
$605.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$639.7M
Cash generated by operations before capital spending.
CapEx
$34.5M
Capital spending and related asset purchases.
FCF margin
26.8%
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 |
|---|---|---|---|---|---|
| 2025-01-31 | $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% |
| 2025-10-31 | $2.3B | $639.7M | $34.5M | $605.2M | 26.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 134.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth vs. Cash Generation
Revenue increased substantially from both comparison periods, but operating cash flow did not keep pace, resulting in a lower free cash flow margin. This divergence is the strongest observable driver of the quarter's cash conversion performance.
The widening gap between revenue growth and cash generation compressed free cash flow margin relative to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, yet operating cash flow declined sequentially, leading to a lower free cash flow margin. Capital expenditure was slightly reduced from the prior quarter but remained higher than a year ago.
Compared to the prior quarter, free cash flow and margin both weakened despite higher revenue. Versus the same quarter last year, free cash flow and operating cash flow improved, but margin declined due to a proportionally larger increase in revenue.
Monitor the trend in free cash flow margin, which declined sequentially and year over year despite rising revenue.