Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's cash generation profile showed mixed trends, with free cash flow lower than the prior quarter but higher than a year earlier, while the free cash flow margin improved relative to both periods. The filing notes the company's consistent ability to generate robust cash flow, supporting the margin improvement.
- Revenue and operating cash flow were lower than both the prior quarter and the same quarter a year earlier, while capital expenditure also decreased. Free cash flow was lower sequentially but higher year-over-year, and the free cash flow margin improved compared to both periods, indicating better cash conversion efficiency.
- Compared to the preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all lower, but the free cash flow margin improved. Compared to the same quarter one year earlier, revenue and operating cash flow were lower, capital expenditure was lower, free cash flow was higher, and the margin improved.
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
$343.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$562.8M
Cash generated by operations before capital spending.
CapEx
$218.9M
Capital spending and related asset purchases.
FCF margin
17.9%
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 |
|---|---|---|---|---|---|
| 2025-05-31 | $2.5B | $637.2M | $192.8M | $444.4M | 17.7% |
| 2025-08-31 | $2.5B | $852.1M | $217.3M | $634.8M | 25.6% |
| 2025-11-30 | $2.2B | $616.9M | $246.0M | $370.9M | 16.7% |
| 2026-02-28 | $1.9B | $562.8M | $218.9M | $343.9M | 17.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 170.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.4% | 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.
Free Cash Flow Margin Improvement
The free cash flow margin increased relative to both the prior quarter and the same quarter last year, as revenue declined more sharply than free cash flow.
The improved margin demonstrates stronger cash conversion efficiency despite lower revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow were lower than both the prior quarter and the same quarter a year earlier, while capital expenditure also decreased. Free cash flow was lower sequentially but higher year-over-year, and the free cash flow margin improved compared to both periods, indicating better cash conversion efficiency.
Compared to the preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all lower, but the free cash flow margin improved. Compared to the same quarter one year earlier, revenue and operating cash flow were lower, capital expenditure was lower, free cash flow was higher, and the margin improved.
Monitor the trajectory of capital expenditure, as it has declined from both prior periods and may affect future free cash flow generation.