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 improved significantly compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin strengthened as a result.
- Revenue increased, and operating cash flow grew at a faster pace, resulting in a higher free cash flow margin. Capital expenditure was slightly higher than the prior quarter but lower than the same quarter last year, supporting the overall cash conversion.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with the free cash flow margin significantly improved. Versus the same quarter last year, revenue and free cash flow were higher, while the free cash flow margin was slightly improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$60.0M
Capital spending and related asset purchases.
FCF margin
48.1%
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 |
|---|---|---|---|---|---|
| 2025-04-30 | $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% |
| 2026-01-31 | $2.5B | $1.3B | $60.0M | $1.2B | 48.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 840.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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 Growth
Operating cash flow increased substantially from the prior quarter and was also higher than the same quarter last year, making it the primary driver of free cash flow improvement.
This growth strengthened the company's cash generation and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, and operating cash flow grew at a faster pace, resulting in a higher free cash flow margin. Capital expenditure was slightly higher than the prior quarter but lower than the same quarter last year, supporting the overall cash conversion.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with the free cash flow margin significantly improved. Versus the same quarter last year, revenue and free cash flow were higher, while the free cash flow margin was slightly improved.
Monitor the impact of macroeconomic trends and customer growth rates on future capital requirements, as noted in the filing.