Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow strengthened considerably versus the prior quarter, driving a substantial improvement in free cash flow margin. Compared to the same period last year, revenue was higher but free cash flow margin was lower.
- Revenue was stable compared to the prior quarter, while operating cash flow increased sharply, resulting in a much higher free cash flow and margin. Capital expenditure also rose, but the increase in operating cash flow more than offset it.
- Compared to the prior quarter, operating cash flow improved markedly and free cash flow strengthened, with the margin rising from a lower level. Versus the same quarter one year earlier, revenue was higher but free cash flow margin was weaker, as operating cash flow grew less than revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$86.0M
Capital spending and related asset purchases.
FCF margin
46.4%
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 |
|---|---|---|---|---|---|
| 2024-04-30 | $2.0B | $372.0M | $81.0M | $291.0M | 14.6% |
| 2024-07-31 | $2.1B | $571.0M | $55.0M | $516.0M | 24.7% |
| 2024-10-31 | $2.2B | $406.0M | $47.0M | $359.0M | 16.6% |
| 2025-01-31 | $2.2B | $1.1B | $86.0M | $1.0B | 46.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1091.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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 surge
Operating cash flow increased sharply from the prior quarter, far outpacing the change in revenue. This drove a substantial rise in free cash flow and margin for the current period.
Free cash flow margin strengthened to a higher level compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, while operating cash flow increased sharply, resulting in a much higher free cash flow and margin. Capital expenditure also rose, but the increase in operating cash flow more than offset it.
Compared to the prior quarter, operating cash flow improved markedly and free cash flow strengthened, with the margin rising from a lower level. Versus the same quarter one year earlier, revenue was higher but free cash flow margin was weaker, as operating cash flow grew less than revenue.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in the coming quarters.