Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained deeply negative in the current quarter, driven by a large operating cash outflow that far exceeded revenue. The cash conversion rate weakened substantially compared to both the prior quarter and the same quarter last year.
- Revenue increased from the prior quarter, but operating cash flow improved only modestly, resulting in a free cash flow margin that remained deeply negative. Capital expenditure was zero, so the entire cash drain came from operations.
- Compared to the prior quarter, revenue was higher and operating cash outflow was lower, yet free cash flow remained negative and the margin improved but stayed deeply negative. Versus the same quarter one year earlier, revenue was higher but operating cash flow turned from a small outflow to a very large outflow, causing a severe weakening in free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$321.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$88.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$88.2M
Cash generated by operations before capital spending.
CapEx
$0
Capital spending and related asset purchases.
FCF margin
-799.2%
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 |
|---|---|---|---|---|---|
| 2025-05-31 | $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% |
| 2026-02-28 | $11.0M | -$88.2M | $0 | -$88.2M | -799.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 2.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | 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.
Operating Cash Outflow
The strongest observable driver of free cash flow was the large negative operating cash flow, which far exceeded revenue and was the sole source of the cash deficit. Capital expenditure was negligible.
Unless operating cash flow improves materially, free cash flow will remain deeply negative regardless of revenue changes.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, but operating cash flow improved only modestly, resulting in a free cash flow margin that remained deeply negative. Capital expenditure was zero, so the entire cash drain came from operations.
Compared to the prior quarter, revenue was higher and operating cash outflow was lower, yet free cash flow remained negative and the margin improved but stayed deeply negative. Versus the same quarter one year earlier, revenue was higher but operating cash flow turned from a small outflow to a very large outflow, causing a severe weakening in free cash flow margin.
Monitor whether operating cash flow can turn positive or at least narrow significantly in upcoming quarters, given the persistent large cash burn.