Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and its margin improved from the year-ago quarter but weakened markedly from the preceding quarter. The sequential decline was driven by a notable reduction in operating cash flow, while capital expenditure remained relatively stable.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow was higher than the year-ago quarter but lower than the preceding quarter, and capital expenditure was moderately lower than the year-ago quarter but slightly higher than the prior quarter. As a result, free cash flow and its margin improved from a year ago but weakened sequentially.
- Compared to the same quarter last year, free cash flow and margin improved. Compared to the prior quarter, both metrics weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$141.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$220.0M
Cash generated by operations before capital spending.
CapEx
$79.0M
Capital spending and related asset purchases.
FCF margin
4.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-05-03 | $2.8B | $220.0M | $79.0M | $141.0M | 4.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 46.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | 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 Operating Cash Flow Weakening
Operating cash flow decreased substantially from the preceding quarter, while capital expenditure edged up, causing free cash flow to fall sharply.
The free cash flow margin contracted from the prior quarter, indicating a less efficient cash conversion in the current period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow was higher than the year-ago quarter but lower than the preceding quarter, and capital expenditure was moderately lower than the year-ago quarter but slightly higher than the prior quarter. As a result, free cash flow and its margin improved from a year ago but weakened sequentially.
Compared to the same quarter last year, free cash flow and margin improved. Compared to the prior quarter, both metrics weakened.
Monitor merchandise inventory levels, a key working capital component, as they increased from the prior quarter-end per the balance sheet.