Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower sequentially but higher year over year. Free cash flow margin weakened from the prior quarter, though it improved significantly compared to the same quarter one year earlier.
- Operating cash flow exceeded capital expenditure, producing positive free cash flow. The free cash flow margin was supported by a stable relationship between operating cash flow and revenue, though capital expenditure was higher relative to the prior quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$312.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$594.7M
Cash generated by operations before capital spending.
CapEx
$282.6M
Capital spending and related asset purchases.
FCF margin
14.4%
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 |
|---|---|---|---|---|---|
| 2024-05-31 | $2.7B | $690.5M | $375.3M | $315.2M | 11.8% |
| 2024-08-31 | $2.9B | $1.2B | $327.8M | $854.0M | 29.3% |
| 2024-11-30 | $2.5B | $685.2M | $228.4M | $456.8M | 18.5% |
| 2025-02-28 | $2.2B | $594.7M | $282.6M | $312.1M | 14.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -83.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.1% | 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.
Capital Expenditure Increase
Capital expenditure rose compared to the previous quarter, which absorbed a larger portion of operating cash flow. This was the strongest observable driver of the sequential decline in free cash flow.
Higher capital expenditure relative to the prior quarter reduced free cash flow despite stable operating cash flow generation from revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, producing positive free cash flow. The free cash flow margin was supported by a stable relationship between operating cash flow and revenue, though capital expenditure was higher relative to the prior quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower.
Monitor the trajectory of capital expenditure, as its increase from the prior quarter contributed to the decline in free cash flow.