Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's free cash flow margin improved significantly from the prior quarter and was slightly higher than the same quarter last year, driven by a substantial increase in operating cash flow. Revenue was stable compared to the year-ago quarter and slightly higher than the previous quarter.
- Operating cash flow was higher than the prior quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter. The combination resulted in free cash flow and free cash flow margin that were both higher than the prior quarter and slightly higher than the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow and margin were significantly higher, driven by a much larger operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were slightly higher, with operating cash flow higher and capital expenditure also higher.
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
$230.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$282.7M
Cash generated by operations before capital spending.
CapEx
$52.0M
Capital spending and related asset purchases.
FCF margin
12.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-08-03 | $1.8B | $282.7M | $52.0M | $230.7M | 12.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | 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 substantially from the prior quarter and was also higher than the year-ago quarter, contributing to a stronger free cash flow. The filing context notes that net revenues increased modestly with comparable brand revenue growth, supported by new product introductions and higher full-price selling.
The improved operating cash flow was the primary factor behind the higher free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter. The combination resulted in free cash flow and free cash flow margin that were both higher than the prior quarter and slightly higher than the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow and margin were significantly higher, driven by a much larger operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were slightly higher, with operating cash flow higher and capital expenditure also higher.
Monitor the trend in capital expenditure, which increased compared to the year-ago quarter while remaining below the prior quarter level.