Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's free cash flow margin weakened sequentially but improved compared to the same quarter one year earlier. Operating cash flow and free cash flow were lower than the prior quarter yet higher than the year-ago period.
- Revenue was lower than the previous quarter but higher than the same quarter last year. Operating cash flow as a proportion of revenue weakened relative to the prior quarter, while capital expenditure decreased both sequentially and year-over-year, resulting in a free cash flow that was lower quarter over quarter but higher year over year.
- Compared with the immediately preceding quarter, both operating cash flow and free cash flow were lower, and the free cash flow margin declined. Compared with the same quarter one year earlier, operating cash flow, free cash flow, and the free cash flow margin were all higher.
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
$203.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$261.9M
Cash generated by operations before capital spending.
CapEx
$58.3M
Capital spending and related asset purchases.
FCF margin
6.4%
The share of revenue converted into free cash flow.
TTM FCF yield
5.6%
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 |
|---|---|---|---|---|---|
| 2025-08-02 | $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% |
| 2026-05-02 | $3.2B | $261.9M | $58.3M | $203.6M | 6.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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.
Year-over-year free cash flow improvement
Free cash flow was higher than the same quarter one year earlier, with operating cash flow higher and capital expenditure lower.
This improvement in free cash flow compared to the prior year enhances the company's liquidity position relative to that period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the previous quarter but higher than the same quarter last year. Operating cash flow as a proportion of revenue weakened relative to the prior quarter, while capital expenditure decreased both sequentially and year-over-year, resulting in a free cash flow that was lower quarter over quarter but higher year over year.
Compared with the immediately preceding quarter, both operating cash flow and free cash flow were lower, and the free cash flow margin declined. Compared with the same quarter one year earlier, operating cash flow, free cash flow, and the free cash flow margin were all higher.
Monitor the material decline in cash and cash equivalents from the end of the prior quarter and the year-ago period, as disclosed in the filing.
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 | $20.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.6% | 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.