Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved from the immediately preceding quarter but weakened from the same quarter one year earlier. Cash conversion showed a stronger relationship between operating cash flow and revenue compared to the prior quarter, though capital expenditure was higher.
- Operating cash flow and revenue both increased sequentially, leading to a higher free cash flow margin. Capital expenditure also rose, but the increase in operating cash flow more than offset it.
- Compared to the prior quarter, free cash flow and margin were higher. Relative to the same quarter last year, free cash flow and margin were lower.
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
$516.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$596.9M
Cash generated by operations before capital spending.
CapEx
$80.9M
Capital spending and related asset purchases.
FCF margin
21.9%
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 |
|---|---|---|---|---|---|
| 2025-05-04 | $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% |
| 2026-02-01 | $2.4B | $596.9M | $80.9M | $516.0M | 21.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 140.2% | 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.
Sequential Operating Cash Flow Improvement
Operating cash flow was higher than the previous quarter, contributing to a stronger free cash flow margin.
This drove the sequential increase in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow and revenue both increased sequentially, leading to a higher free cash flow margin. Capital expenditure also rose, but the increase in operating cash flow more than offset it.
Compared to the prior quarter, free cash flow and margin were higher. Relative to the same quarter last year, free cash flow and margin were lower.
Monitor capital expenditure levels, as they were higher than both the prior quarter and the year-ago quarter.