Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow rose while revenue remained stable. The filing notes a share repurchase authorization with remaining capacity, which may affect future cash allocation.
- Revenue was stable compared to the prior quarter, but operating cash flow improved, driving a higher free cash flow margin. The conversion from revenue to free cash flow strengthened sequentially.
- Sequentially, free cash flow and margin improved as operating cash flow increased while capital expenditure rose modestly. Compared to the same quarter last year, free cash flow, margin, and revenue were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$634.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$852.1M
Cash generated by operations before capital spending.
CapEx
$217.3M
Capital spending and related asset purchases.
FCF margin
25.6%
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 |
|---|---|---|---|---|---|
| 2024-11-30 | $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% |
| 2025-08-31 | $2.5B | $852.1M | $217.3M | $634.8M | 25.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.2B | 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 Improvement
Operating cash flow increased significantly from the prior quarter, driving free cash flow higher despite stable revenue. This was the strongest observable factor in the sequential improvement.
The higher operating cash flow directly lifted free cash flow and the free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, but operating cash flow improved, driving a higher free cash flow margin. The conversion from revenue to free cash flow strengthened sequentially.
Sequentially, free cash flow and margin improved as operating cash flow increased while capital expenditure rose modestly. Compared to the same quarter last year, free cash flow, margin, and revenue were all lower.
The trend in capital expenditure, which increased from the prior quarter but remained below the year-ago level, is a concrete item to monitor.