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, but operating cash flow and free cash flow turned significantly more negative, resulting in a deeply negative free cash flow margin that worsened relative to both periods. The negative cash conversion highlights that cash outflows from operations far exceeded revenue, with no capital expenditure.
- Revenue was higher than in the immediately preceding quarter and the year-ago quarter, yet operating cash flow became more negative, producing free cash flow of negative thirty-one million dollars and a free cash flow margin that weakened from both comparison periods. With capital expenditure at zero, the entire cash outflow originated from operations.
- Revenue was higher than both the previous quarter and the year-ago quarter, while operating cash flow and free cash flow were lower (more negative) in both comparisons. The free cash flow margin weakened from the prior quarter and from the same quarter one year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
-$31.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$31.0M
Cash generated by operations before capital spending.
CapEx
$0
Capital spending and related asset purchases.
FCF margin
-1122.8%
The share of revenue converted into free cash flow.
TTM FCF yield
n/a
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | -$31.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $0 | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$31.0M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $61135 | -$829946 | n/a | n/a | n/a |
| 2023-06-30 | $74912 | -$1.1M | n/a | n/a | n/a |
| 2023-09-30 | $60135 | -$987478 | n/a | n/a | n/a |
| 2023-12-31 | $80856 | -$854100 | $6016 | -$860116 | -1063.8% |
| 2024-03-31 | $124841 | -$1.0M | $11902 | -$1.1M | -844.7% |
| 2024-06-30 | $92966 | -$1.3M | $2859 | -$1.3M | -1379.4% |
| 2024-09-30 | $984000 | -$13.2M | $185239 | -$13.4M | -1360.3% |
| 2024-12-31 | $1.0M | -$6.1M | $176000 | -$6.2M | -603.8% |
| 2025-03-31 | $1.4M | -$5.6M | $50000 | -$5.6M | -396.2% |
| 2025-06-30 | $173259 | $2.3M | n/a | n/a | n/a |
| 2025-09-11 | $1.3M | -$14.9M | n/a | n/a | n/a |
| 2025-12-31 | $1.3M | -$11.0M | $12000 | -$11.0M | -877.7% |
| 2026-03-31 | $2.8M | -$31.0M | $0 | -$31.0M | -1122.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 11.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | 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 Deterioration
The quarter's operating cash flow deficit increased substantially compared to both the prior quarter and the year-ago period, even as revenue rose. This drove the free cash flow deeper into negative territory.
The company's cash conversion efficiency weakened, as evidenced by the more negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than in the immediately preceding quarter and the year-ago quarter, yet operating cash flow became more negative, producing free cash flow of negative thirty-one million dollars and a free cash flow margin that weakened from both comparison periods. With capital expenditure at zero, the entire cash outflow originated from operations.
Revenue was higher than both the previous quarter and the year-ago quarter, while operating cash flow and free cash flow were lower (more negative) in both comparisons. The free cash flow margin weakened from the prior quarter and from the same quarter one year earlier.
Monitor the trajectory of operating cash flow, as the current quarter's significant outflow widened the gap between revenue and cash conversion; the filing notes that the company holds substantial digital assets and does not intend to liquidate them for working capital needs.
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 | n/a | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | 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.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |