Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow was positive with a healthy margin, driven by strong operating cash flow and reduced capital expenditure. Compared to the prior quarter, performance improved markedly, while relative to the same quarter last year, results were slightly lower.
- Revenue generated substantial operating cash flow, and after deducting capital expenditure, free cash flow was robust, resulting in a solid free cash flow margin.
- Operating cash flow and free cash flow turned positive from negative in the previous quarter, and while both were slightly lower than the same quarter last year, the margin remained strong.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$964.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$962.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$73.9M
Capital spending and related asset purchases.
FCF margin
27.6%
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 |
|---|---|---|---|---|---|
| 2024-05-04 | $2.7B | $159.3M | $91.0M | $68.3M | 2.5% |
| 2024-08-03 | $2.6B | $199.5M | $95.3M | $104.3M | 4.1% |
| 2024-11-02 | $2.5B | -$56.8M | $114.2M | -$171.1M | -6.8% |
| 2025-02-01 | $3.5B | $1.0B | $73.9M | $962.6M | 27.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 244.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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.
Operating Cash Flow Recovery
Operating cash flow swung from negative in the prior quarter to positive in the current quarter, significantly boosting free cash flow.
This recovery was the primary factor behind the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue generated substantial operating cash flow, and after deducting capital expenditure, free cash flow was robust, resulting in a solid free cash flow margin.
Operating cash flow and free cash flow turned positive from negative in the previous quarter, and while both were slightly lower than the same quarter last year, the margin remained strong.
Monitor capital expenditure levels, which decreased from both the prior quarter and the year-ago quarter, as they directly impact free cash flow.