Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased sequentially despite higher revenue, primarily due to lower operating cash flow. Compared to the same quarter last year, free cash flow improved on significantly higher revenue and operating cash flow.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower sequentially but higher year over year. Capital expenditure decreased compared to the year-ago period but increased from the prior quarter. Free cash flow and free cash flow margin weakened sequentially yet improved compared to the same quarter one year earlier.
- Compared to the preceding quarter, revenue increased while operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year ago, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$550.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$588.0M
Cash generated by operations before capital spending.
CapEx
$38.0M
Capital spending and related asset purchases.
FCF margin
22.6%
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 |
|---|---|---|---|---|---|
| 2025-01-31 | $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% |
| 2025-10-31 | $2.4B | $588.0M | $38.0M | $550.0M | 22.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 218.3% | 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.
Operating Cash Flow Shift
Operating cash flow decreased from the prior quarter, reversing the pattern of improvement seen year over year. This was the strongest observable driver of the sequential decline in free cash flow and margin.
The sequential drop in operating cash flow directly reduced free cash flow, even as revenue continued to rise.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower sequentially but higher year over year. Capital expenditure decreased compared to the year-ago period but increased from the prior quarter. Free cash flow and free cash flow margin weakened sequentially yet improved compared to the same quarter one year earlier.
Compared to the preceding quarter, revenue increased while operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year ago, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, and capital expenditure was lower.
Monitor the sequential decline in operating cash flow, which drove the weakening in free cash flow despite higher revenue.