Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to the prior quarter and the same quarter last year, while operating cash flow and free cash flow also improved. The free cash flow margin strengthened, supported by higher revenue and a lower capital expenditure relative to the year-ago period.
- Operating cash flow grew faster than revenue, leading to an improved free cash flow margin. Capital expenditure was a smaller share of operating cash flow compared to a year earlier, further boosting free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year ago, all metrics were higher, with a notable improvement in free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$248.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$316.3M
Cash generated by operations before capital spending.
CapEx
$68.2M
Capital spending and related asset purchases.
FCF margin
13.2%
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 |
|---|---|---|---|---|---|
| 2025-02-02 | $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% |
| 2025-11-02 | $1.9B | $316.3M | $68.2M | $248.1M | 13.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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.
Revenue Growth and Margin Expansion
Revenue increased due to strong sales across furniture and non-furniture categories, including new product introductions and collaborations, along with higher full-price selling. The company reported comp growth in both retail and e-commerce channels, with retail outperforming.
This drove higher operating cash flow and an improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew faster than revenue, leading to an improved free cash flow margin. Capital expenditure was a smaller share of operating cash flow compared to a year earlier, further boosting free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year ago, all metrics were higher, with a notable improvement in free cash flow margin.
Monitor the trend in retail channel sales performance, which contributed significantly to revenue growth.