Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher sequentially but lower year-over-year. Free cash flow remained deeply negative, with a significant weakening of free cash flow margin versus both prior periods.
- Operating cash flow was negative and substantially larger than capital expenditure, resulting in a negative free cash flow that consumed nearly a third of revenue. The cash conversion cycle remains strained as operating cash outflows far exceeded capital investment.
- Compared to the prior quarter, revenue increased modestly while operating cash flow and free cash flow both turned more negative, causing the free cash flow margin to decline sharply. Versus the same quarter a year ago, revenue was lower and all cash flow metrics weakened substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$35.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$9.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$9.6M
Cash generated by operations before capital spending.
CapEx
$188000
Capital spending and related asset purchases.
FCF margin
-29.5%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $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% |
| 2025-09-30 | $33.1M | -$9.6M | $188000 | -$9.8M | -29.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -387.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $351.7M | 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
Operating cash flow shifted from a relatively narrow negative in both comparison periods to a much wider negative this quarter, despite slightly higher revenue. This was the strongest observable factor behind free cash flow decline.
Without an improvement in operating cash conversion, free cash flow will remain under pressure even if revenue stabilizes.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative and substantially larger than capital expenditure, resulting in a negative free cash flow that consumed nearly a third of revenue. The cash conversion cycle remains strained as operating cash outflows far exceeded capital investment.
Compared to the prior quarter, revenue increased modestly while operating cash flow and free cash flow both turned more negative, causing the free cash flow margin to decline sharply. Versus the same quarter a year ago, revenue was lower and all cash flow metrics weakened substantially.
Monitor whether operating cash flow can narrow the gap toward breakeven given the higher sequential revenue base.