Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was positive and strong this quarter, supported by a rise in operating cash flow relative to revenue. The margin weakened compared to the same quarter last year but improved sharply from the prior quarter.
- Revenue increased from the prior quarter and the year-ago quarter. Operating cash flow rose substantially from the prior quarter and was higher than the year-ago quarter. Capital expenditure was higher than both comparison periods. Free cash flow was positive, in contrast to the prior quarter's negative free cash flow, and was modestly above the year-ago period. Free cash flow margin improved from the prior quarter's negative level but was lower than the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow turning from negative to positive. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, while free cash flow was stable and free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$989.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$191.6M
Capital spending and related asset purchases.
FCF margin
25.4%
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 |
|---|---|---|---|---|---|
| 2025-05-03 | $2.8B | $220.0M | $79.0M | $141.0M | 4.9% |
| 2025-08-02 | $2.8B | $96.5M | $77.0M | $19.6M | 0.7% |
| 2025-11-01 | $2.9B | $5.6M | $87.3M | -$81.6M | -2.9% |
| 2026-01-31 | $3.9B | $1.2B | $191.6M | $989.0M | 25.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 277.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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 recovered strongly from the prior quarter's low level, rising to a level higher than both the prior quarter and the year-ago quarter. This was the primary observable factor behind the swing to positive free cash flow.
The increase in operating cash flow drove free cash flow from a deficit to a surplus, even with higher capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter and the year-ago quarter. Operating cash flow rose substantially from the prior quarter and was higher than the year-ago quarter. Capital expenditure was higher than both comparison periods. Free cash flow was positive, in contrast to the prior quarter's negative free cash flow, and was modestly above the year-ago period. Free cash flow margin improved from the prior quarter's negative level but was lower than the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow turning from negative to positive. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, while free cash flow was stable and free cash flow margin was lower.
Monitor capital expenditure levels in future quarters given the increase this period relative to both prior periods.