Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than both the preceding quarter and the same quarter one year earlier. The free cash flow margin also declined.
- Despite higher revenue year over year, operating cash flow decreased, while capital expenditure increased relative to the prior year, resulting in a reduced free cash flow margin.
- Compared to the prior quarter, revenue decreased while operating cash flow and free cash flow dropped more sharply. Versus the same quarter last year, revenue rose slightly but operating cash flow fell, leading to a weaker free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$60.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$118.9M
Cash generated by operations before capital spending.
CapEx
$58.3M
Capital spending and related asset purchases.
FCF margin
3.5%
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 |
|---|---|---|---|---|---|
| 2024-07-28 | $1.8B | $246.5M | $31.4M | $215.1M | 12.0% |
| 2024-10-27 | $1.8B | $253.5M | $83.4M | $170.1M | 9.4% |
| 2025-02-02 | $2.5B | $633.5M | $67.2M | $566.3M | 23.0% |
| 2025-05-04 | $1.7B | $118.9M | $58.3M | $60.7M | 3.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 26.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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 Decline
Operating cash flow decreased compared to both the preceding quarter and the year-ago quarter, even as revenue grew relative to last year. This was the primary factor behind the lower free cash flow.
The weakened cash conversion contributed to a lower free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue year over year, operating cash flow decreased, while capital expenditure increased relative to the prior year, resulting in a reduced free cash flow margin.
Compared to the prior quarter, revenue decreased while operating cash flow and free cash flow dropped more sharply. Versus the same quarter last year, revenue rose slightly but operating cash flow fell, leading to a weaker free cash flow margin.
Observe how product collaborations and new introductions influence cash generation.