Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined while operating cash flow turned sharply negative, leading to a significant negative free cash flow margin. The company's cash conversion weakened substantially compared to both the preceding quarter and the same quarter one year earlier.
- Operating cash flow was negative, and capital expenditure added to the cash outflow, resulting in negative free cash flow. The free cash flow margin worsened from positive levels in the prior periods.
- Compared to the preceding quarter, revenue decreased, operating cash flow moved from positive to negative, and capital expenditure increased from zero. Compared to the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow both turned negative from positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$5.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$6.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$5.5M
Cash generated by operations before capital spending.
CapEx
$1.0M
Capital spending and related asset purchases.
FCF margin
-495.2%
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 |
|---|---|---|---|---|---|
| 2024-11-30 | $1.2M | -$96000 | $18000 | -$114000 | -9.5% |
| 2025-02-28 | $1.5M | -$215000 | $0 | -$215000 | -14.2% |
| 2025-05-31 | $2.1M | $1.7M | $0 | $1.7M | 81.7% |
| 2025-08-31 | $1.3M | -$5.5M | $1.0M | -$6.6M | -495.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 79.0% | 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.
Sharp decline in operating cash flow
The primary driver of the negative free cash flow was the large negative operating cash flow, which reversed from positive in both comparison periods. Revenue alone could not offset the cash outflow.
Unless operating cash flow improves, the company may continue to face negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and capital expenditure added to the cash outflow, resulting in negative free cash flow. The free cash flow margin worsened from positive levels in the prior periods.
Compared to the preceding quarter, revenue decreased, operating cash flow moved from positive to negative, and capital expenditure increased from zero. Compared to the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow both turned negative from positive.
Monitor the trajectory of operating cash flow, as it shifted from positive to a significant negative in the current quarter.