Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative but improved compared to both the prior quarter and the same quarter last year, driven by a smaller operating cash outflow. Revenue declined from both comparison periods, while capital expenditure dropped sharply.
- Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow was negative but less negative than in either comparison period, and capital expenditure was minimal. As a result, free cash flow and free cash flow margin were also negative but improved sequentially and year-over-year.
- Compared with the immediately preceding quarter, revenue was lower, operating cash flow was less negative, capital expenditure was much lower, and free cash flow was less negative with an improved margin. Versus the same quarter one year earlier, revenue was lower, operating cash flow was less negative, capital expenditure was much lower, and free cash flow was less negative with an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$27.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$3.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$3.9M
Cash generated by operations before capital spending.
CapEx
$5000
Capital spending and related asset purchases.
FCF margin
-11.9%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $41.5M | -$1.9M | $137000 | -$2.0M | -4.9% |
| 2024-12-31 | $43.8M | -$14.8M | $180000 | -$15.0M | -34.2% |
| 2025-03-31 | $34.8M | -$6.7M | $80000 | -$6.7M | -19.4% |
| 2025-06-30 | $32.5M | -$3.9M | $5000 | -$3.9M | -11.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $287.8M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Operating Cash Flow
Operating cash flow was less negative than in both the prior quarter and the year-ago quarter, even though revenue was lower. This was the strongest observable driver of the improvement in free cash flow.
The smaller operating cash outflow directly reduced the free cash flow deficit and improved the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow was negative but less negative than in either comparison period, and capital expenditure was minimal. As a result, free cash flow and free cash flow margin were also negative but improved sequentially and year-over-year.
Compared with the immediately preceding quarter, revenue was lower, operating cash flow was less negative, capital expenditure was much lower, and free cash flow was less negative with an improved margin. Versus the same quarter one year earlier, revenue was lower, operating cash flow was less negative, capital expenditure was much lower, and free cash flow was less negative with an improved margin.
Revenue has declined for two consecutive quarters; monitor whether this trend continues.