Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the same quarter last year but higher than the prior quarter. Free cash flow margin improved compared to both the preceding quarter and the year-ago quarter.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than both the prior quarter and the same quarter last year, indicating improved cash conversion efficiency relative to revenue.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Compared to the same quarter last year, revenue was lower, but operating cash flow and free cash flow were higher, with capital expenditure also 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
$484.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$661.8M
Cash generated by operations before capital spending.
CapEx
$177.2M
Capital spending and related asset purchases.
FCF margin
19.9%
The share of revenue converted into free cash flow.
TTM FCF yield
n/a
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-08-31 | $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% |
| 2026-05-31 | $2.4B | $661.8M | $177.2M | $484.6M | 19.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.1B | 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 Expansion
The free cash flow margin increased from the prior quarter and from the same quarter last year, driven by higher operating cash flow and lower capital expenditure relative to revenue.
This improvement strengthened the company's cash generation efficiency during the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than both the prior quarter and the same quarter last year, indicating improved cash conversion efficiency relative to revenue.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Compared to the same quarter last year, revenue was lower, but operating cash flow and free cash flow were higher, with capital expenditure also lower.
Monitor the level of capital expenditure relative to operating cash flow, as it was lower in the current quarter compared to both prior periods.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | n/a | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.