Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
BigBear.ai's free cash flow remained negative in the first quarter, but improved from the prior quarter. Revenue rose from the previous quarter, though operating cash flow, while still negative, also improved.
- Revenue increased compared to the previous quarter, while operating cash flow was less negative, leading to a smaller free cash flow deficit. Capital expenditure increased slightly, and the free cash flow margin improved from the prior quarter.
- Sequentially, revenue was higher, operating cash flow less negative, and free cash flow less negative, resulting in an improved free cash flow margin. Compared to the same quarter one year earlier, revenue was slightly lower, operating cash flow was more negative, and free cash flow and its margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$54.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$18.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$18.0M
Cash generated by operations before capital spending.
CapEx
$319000
Capital spending and related asset purchases.
FCF margin
-53.2%
The share of revenue converted into free cash flow.
TTM FCF yield
-3.6%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-06-30 | $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% |
| 2026-03-31 | $34.4M | -$18.0M | $319000 | -$18.3M | -53.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 32.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $84.1M | 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 Improvement
Operating cash flow was less negative than in the prior quarter, reflecting a smaller cash outflow from operations. This reduction was the primary factor behind the narrower free cash flow deficit.
The sequential improvement in operating cash flow helped reduce the free cash flow deficit, but the company remains cash flow negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to the previous quarter, while operating cash flow was less negative, leading to a smaller free cash flow deficit. Capital expenditure increased slightly, and the free cash flow margin improved from the prior quarter.
Sequentially, revenue was higher, operating cash flow less negative, and free cash flow less negative, resulting in an improved free cash flow margin. Compared to the same quarter one year earlier, revenue was slightly lower, operating cash flow was more negative, and free cash flow and its margin weakened.
Monitor the trajectory of free cash flow margin, as it remains negative and has worsened compared to the same quarter last year.
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 | $1.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | -3.6% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | -25.9x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.