Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, with a margin improvement from the prior quarter. Compared to the year-ago quarter, free cash flow and margin were lower, despite similar revenue.
- Revenue was slightly higher than the prior quarter but slightly lower than a year ago. Operating cash flow improved significantly from the prior quarter, but was slightly below the year-ago level, while capital expenditure was higher than both periods. The resulting free cash flow and margin turned positive sequentially, though they remained below the year-ago quarter.
- Cash flow metrics improved sequentially, with free cash flow moving from negative to positive and the margin strengthening. Year-over-year, free cash flow and margin weakened, while capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.1B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
4.0%
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 |
|---|---|---|---|---|---|
| 2024-11-02 | $25.7B | $739.0M | $655.0M | $84.0M | 0.3% |
| 2025-02-01 | $30.9B | $3.3B | $923.0M | $2.4B | 7.7% |
| 2025-05-03 | $23.8B | $275.0M | $790.0M | -$515.0M | -2.2% |
| 2025-08-02 | $25.2B | $2.1B | $1.1B | $1.0B | 4.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential recovery in operating cash flow
Operating cash flow increased substantially from the prior quarter, reversing the negative free cash flow. This was the primary factor in the margin improvement.
The improvement in operating cash flow strengthened the company's cash generation capacity relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter but slightly lower than a year ago. Operating cash flow improved significantly from the prior quarter, but was slightly below the year-ago level, while capital expenditure was higher than both periods. The resulting free cash flow and margin turned positive sequentially, though they remained below the year-ago quarter.
Cash flow metrics improved sequentially, with free cash flow moving from negative to positive and the margin strengthening. Year-over-year, free cash flow and margin weakened, while capital expenditure increased.
Capital expenditure level relative to operating cash flow, given that spending increased while operating cash flow decreased year-over-year.