Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year. Free cash flow margin strengthened sequentially but was slightly above the year-ago level.
- Operating cash flow, net of capital expenditure, resulted in positive free cash flow. The free cash flow margin reflected the relationship between revenue and the conversion to free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Versus the same quarter one year earlier, revenue and operating cash flow were higher, while capital expenditure was lower, contributing to higher free cash flow and an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$588.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$616.0M
Cash generated by operations before capital spending.
CapEx
$28.0M
Capital spending and related asset purchases.
FCF margin
25.0%
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 |
|---|---|---|---|---|---|
| 2024-10-31 | $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% |
| 2025-07-31 | $2.3B | $616.0M | $28.0M | $588.0M | 25.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 257.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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 improvement
Operating cash flow increased compared to both the prior quarter and the same quarter last year, supporting higher free cash flow.
The improvement in operating cash flow was the strongest observable factor in the free cash flow increase.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow, net of capital expenditure, resulted in positive free cash flow. The free cash flow margin reflected the relationship between revenue and the conversion to free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Versus the same quarter one year earlier, revenue and operating cash flow were higher, while capital expenditure was lower, contributing to higher free cash flow and an improved margin.
Monitor the trajectory of capital expenditure, which declined from both the prior quarter and the year-ago quarter.