Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined while operating cash outflow widened, resulting in a more negative free cash flow and a sharply lower margin. The cash conversion weakened compared to both the prior quarter and the same quarter last year.
- Revenue decreased, operating cash flow became more negative, and capital expenditure rose slightly, leading to a larger free cash flow deficit and a substantially lower free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all weakened. Versus the same quarter one year earlier, all metrics were also lower, with the free cash flow margin showing the most pronounced deterioration.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$42.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$22.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$21.8M
Cash generated by operations before capital spending.
CapEx
$252000
Capital spending and related asset purchases.
FCF margin
-80.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $27.3M | -$21.8M | $252000 | -$22.1M | -80.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 378.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$19.9M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Weakening Revenue and Operating Cash Flow
The decline in revenue combined with a wider operating cash outflow drove the more negative free cash flow and the lower margin. This is the strongest observable factor in the quarter.
The combined effect of lower revenue and higher operating cash consumption significantly reduced the company's cash generation ability relative to prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased, operating cash flow became more negative, and capital expenditure rose slightly, leading to a larger free cash flow deficit and a substantially lower free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all weakened. Versus the same quarter one year earlier, all metrics were also lower, with the free cash flow margin showing the most pronounced deterioration.
Monitor the trajectory of operating cash flow, as its negative swing was the largest component of the free cash flow decline.