Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year, driven by higher operating cash flow and stable capital expenditure. However, free cash flow and margin weakened sharply from the preceding quarter due to lower revenue and operating cash flow.
- Revenue was higher than the year-ago quarter, and operating cash flow increased, leading to improved free cash flow and a higher free cash flow margin. Capital expenditure was nearly unchanged from the year-ago level.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were higher, while capital expenditure was slightly 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
$98.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$156.3M
Cash generated by operations before capital spending.
CapEx
$57.7M
Capital spending and related asset purchases.
FCF margin
5.5%
The share of revenue converted into free cash flow.
TTM FCF yield
4.2%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-08-03 | $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% |
| 2026-05-03 | $1.8B | $156.3M | $57.7M | $98.6M | 5.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 42.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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 was higher than the same quarter last year, which was the primary factor behind the increase in free cash flow. Capital expenditure remained relatively stable year over year.
Higher operating cash flow directly supported a stronger free cash flow margin compared to the prior year quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the year-ago quarter, and operating cash flow increased, leading to improved free cash flow and a higher free cash flow margin. Capital expenditure was nearly unchanged from the year-ago level.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were higher, while capital expenditure was slightly lower.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite year-over-year improvement.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $26.2B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.2% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.