This report does not constitute a rating action. Free operating cash flow (FOCF) will be healthy in fiscal 2027 (ending Jan. 31st) despite ongoing business reinvestment. We project adjusted FOCF of $85 million-$95 million in fiscal 2027 compared to approximately $205 million in the year prior. The year-over-year decline considers our expectation of normalized positive FOCF, as the year prior benefitted from a pull-forward in customer collections that shifted working capital to a source of cash for the first time since before the take-private in 2021. Our forecast also reflects our assumptions that Cloudera?s earnings will have support from low- to mid-single digit percent subscription sales growth and adjusted EBITDA margin sustained around 41% and the pace of capital expenditure
