Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased but the company continued to generate negative free cash flow as operating cash outflows exceeded inflows. The free cash flow margin improved compared to both the prior quarter and the same quarter last year due to a smaller operating cash deficit relative to revenue.
- Revenue rose while operating cash flow remained negative, resulting in a negative free cash flow that was slightly less than the operating cash outflow because capital expenditure was comparatively small. The free cash flow margin was negative but improved from the prior quarter and the year-ago period.
- Compared to the preceding quarter, revenue was higher, operating cash flow was less negative, capital expenditure was lower, and free cash flow was less negative, leading to an improved free cash flow margin. Versus the same quarter one year earlier, revenue was substantially higher, operating cash flow and free cash flow were more negative, but the free cash flow margin improved because revenue growth outpaced the cash burn rate.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$26.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$5.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$5.6M
Cash generated by operations before capital spending.
CapEx
$50000
Capital spending and related asset purchases.
FCF margin
-396.2%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 150.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | 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.
Revenue growth driving margin improvement
Revenue increased significantly from both the prior quarter and the same quarter last year, while the absolute level of negative operating cash flow did not grow at the same pace. This combination caused the free cash flow margin to improve over both comparison periods.
A higher revenue base with a relatively contained cash burn rate reduced the severity of the negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow remained negative, resulting in a negative free cash flow that was slightly less than the operating cash outflow because capital expenditure was comparatively small. The free cash flow margin was negative but improved from the prior quarter and the year-ago period.
Compared to the preceding quarter, revenue was higher, operating cash flow was less negative, capital expenditure was lower, and free cash flow was less negative, leading to an improved free cash flow margin. Versus the same quarter one year earlier, revenue was substantially higher, operating cash flow and free cash flow were more negative, but the free cash flow margin improved because revenue growth outpaced the cash burn rate.
Monitor the trajectory of operating cash flow to see if it can move closer to breakeven as revenue continues to grow.