Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, and operating cash flow turned positive from a negative prior quarter. However, capital expenditure rose substantially, resulting in negative free cash flow.
- Operating cash flow turned positive while revenue was higher, but capital expenditure far exceeded operating cash flow, causing free cash flow to remain negative and the free cash flow margin to be deeply negative.
- Revenue was higher than both the prior quarter and the year-ago quarter; operating cash flow improved from the prior quarter but was lower than a year ago. Capital expenditure was higher than both comparison periods, and free cash flow was less negative than the prior quarter but more negative than the year-ago quarter, resulting in a free cash flow margin that improved sequentially but weakened year over year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$694.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$251.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.9M
Cash generated by operations before capital spending.
CapEx
$257.5M
Capital spending and related asset purchases.
FCF margin
-475.4%
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 |
|---|---|---|---|---|---|
| 2024-05-31 | $14.7M | -$31.5M | $57.4M | -$88.9M | -603.1% |
| 2024-08-31 | $34.8M | -$75.9M | $54.8M | -$130.7M | -375.0% |
| 2024-11-30 | $36.2M | -$52.3M | $171.0M | -$223.3M | -617.5% |
| 2025-02-28 | $52.9M | $5.9M | $257.5M | -$251.6M | -475.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 707.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 486.6% | 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.
Capital Expenditure Expansion
Capital expenditure increased significantly compared to both the prior quarter and the same quarter last year, far exceeding operating cash flow.
The elevated capital spending is the primary factor behind the negative 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 turned positive while revenue was higher, but capital expenditure far exceeded operating cash flow, causing free cash flow to remain negative and the free cash flow margin to be deeply negative.
Revenue was higher than both the prior quarter and the year-ago quarter; operating cash flow improved from the prior quarter but was lower than a year ago. Capital expenditure was higher than both comparison periods, and free cash flow was less negative than the prior quarter but more negative than the year-ago quarter, resulting in a free cash flow margin that improved sequentially but weakened year over year.
Monitor the trend of capital expenditure relative to operating cash flow generation.