Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than a year earlier. Free cash flow margin weakened versus the preceding quarter but improved compared to the same quarter last year.
- Operating cash flow and free cash flow were lower than the prior quarter but higher than a year ago, with capital expenditure also decreasing sequentially. The free cash flow margin moved in line with operating cash flow, reflecting a lower conversion rate than the previous quarter and an improved rate year over year.
- Compared to the immediately preceding quarter, free cash flow declined sharply while revenue was unchanged, resulting in a significantly weaker margin. Versus the same quarter one year earlier, free cash flow and margin both improved as operating cash flow rose and capital expenditure fell.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$421.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$457.0M
Cash generated by operations before capital spending.
CapEx
$36.0M
Capital spending and related asset purchases.
FCF margin
18.8%
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 |
|---|---|---|---|---|---|
| 2024-07-31 | $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% |
| 2025-04-30 | $2.2B | $457.0M | $36.0M | $421.0M | 18.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 619.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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 cash generation improvement
Operating cash flow and free cash flow both rose compared to the same quarter last year, while capital expenditure declined. This combined effect produced a stronger free cash flow margin.
The strongest observable driver was the increase in operating cash flow relative to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow and free cash flow were lower than the prior quarter but higher than a year ago, with capital expenditure also decreasing sequentially. The free cash flow margin moved in line with operating cash flow, reflecting a lower conversion rate than the previous quarter and an improved rate year over year.
Compared to the immediately preceding quarter, free cash flow declined sharply while revenue was unchanged, resulting in a significantly weaker margin. Versus the same quarter one year earlier, free cash flow and margin both improved as operating cash flow rose and capital expenditure fell.
Monitor whether the sequential decline in operating cash flow stabilizes or reverses in the coming quarter.