Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved compared to both the prior quarter and the same quarter last year, but the operating cash outflow widened substantially. The free cash flow margin declined sharply from both comparison periods, reflecting weaker cash conversion.
- Despite higher revenue, operating cash flow turned from a relatively small outflow in the prior quarter to a much larger outflow, driving free cash flow deeper negative. Capital expenditure was lower than the prior quarter, but the free cash flow margin fell steeply, indicating that the revenue increase did not translate into improved cash generation.
- Compared to the immediately preceding quarter, revenue increased, while operating cash flow, free cash flow, and free cash flow margin all weakened significantly. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were substantially worse.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$233.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$228.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$228.4M
Cash generated by operations before capital spending.
CapEx
$376000
Capital spending and related asset purchases.
FCF margin
-9975.2%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-11-30 | $2.3M | -$228.4M | $376000 | -$228.7M | -9975.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 4.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.4% | 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.
Operating cash flow deterioration
The strongest observable driver was the sharp widening of operating cash outflow, which overwhelmed the revenue gain and drove free cash flow deeper negative, despite lower capital spending. The free cash flow margin dropped precipitously from both comparison periods.
The cash conversion cycle became severely strained, as the operating cash flow deficit expanded far faster than revenue increased.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow turned from a relatively small outflow in the prior quarter to a much larger outflow, driving free cash flow deeper negative. Capital expenditure was lower than the prior quarter, but the free cash flow margin fell steeply, indicating that the revenue increase did not translate into improved cash generation.
Compared to the immediately preceding quarter, revenue increased, while operating cash flow, free cash flow, and free cash flow margin all weakened significantly. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were substantially worse.
The large negative operating cash flow relative to revenue is the primary item to monitor in upcoming quarters.