Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and its margin improved compared with both the prior quarter and the same quarter one year earlier, supported by a lower capital expenditure. Operating cash flow was higher than the prior quarter but lower than the year-ago level.
- Revenue was higher than the prior quarter but lower than the year-ago period. Operating cash flow followed a similar pattern, while capital expenditure was lower than both comparisons. The combination yielded free cash flow and margin that were higher than both prior periods.
- Compared with the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower; the free cash flow margin improved. Versus the same quarter one year earlier, revenue and operating cash flow were lower, but capital expenditure was substantially lower, resulting in higher free cash flow and an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$444.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$637.2M
Cash generated by operations before capital spending.
CapEx
$192.8M
Capital spending and related asset purchases.
FCF margin
17.7%
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 |
|---|---|---|---|---|---|
| 2024-08-31 | $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% |
| 2025-05-31 | $2.5B | $637.2M | $192.8M | $444.4M | 17.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 86.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower Capital Expenditure
Capital expenditure was lower than both the prior quarter and the year-ago quarter, providing a direct boost to free cash flow even as operating cash flow declined relative to the prior year.
This reduction in capital spending was the most significant observable factor behind the improvement in free cash flow and its margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than the year-ago period. Operating cash flow followed a similar pattern, while capital expenditure was lower than both comparisons. The combination yielded free cash flow and margin that were higher than both prior periods.
Compared with the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower; the free cash flow margin improved. Versus the same quarter one year earlier, revenue and operating cash flow were lower, but capital expenditure was substantially lower, resulting in higher free cash flow and an improved margin.
Monitor the pace of share repurchases, as the filing discloses a remaining authorization of nearly four billion dollars, which could influence future cash balances.