Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's free cash flow was negative in the current quarter, driven by negative operating cash flow and modest capital expenditure, resulting in a negative margin. Compared to the prior quarter, cash conversion weakened significantly as operating cash flow turned from positive to negative, while revenue declined.
- Revenue was lower than the prior quarter but roughly in line with the same quarter last year. Operating cash flow was negative, leading to negative free cash flow after capital expenditure, with a negative margin. The conversion from revenue to cash was weak.
- The current quarter's free cash flow and margin were lower than the prior quarter, reflecting a sharp deterioration in operating cash flow. Relative to the same quarter last year, free cash flow and margin were also lower, though the year-ago quarter also had negative free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$68.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$44.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$41.9M
Cash generated by operations before capital spending.
CapEx
$2.8M
Capital spending and related asset purchases.
FCF margin
-10.7%
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 |
|---|---|---|---|---|---|
| 2024-04-27 | $235.9M | $81.7M | $2.6M | $79.1M | 33.5% |
| 2024-07-27 | $250.9M | -$143.5M | $4.0M | -$147.5M | -58.8% |
| 2024-10-26 | $559.7M | $47.4M | $3.1M | $44.4M | 7.9% |
| 2025-01-25 | $419.7M | -$41.9M | $2.8M | -$44.7M | -10.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -249.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$132.0M | 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 Swing
Operating cash flow turned from positive in the prior quarter to negative in the current quarter, while capital expenditure remained relatively stable. This shift drove the free cash flow into negative territory.
The negative operating cash flow significantly weakened cash conversion and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but roughly in line with the same quarter last year. Operating cash flow was negative, leading to negative free cash flow after capital expenditure, with a negative margin. The conversion from revenue to cash was weak.
The current quarter's free cash flow and margin were lower than the prior quarter, reflecting a sharp deterioration in operating cash flow. Relative to the same quarter last year, free cash flow and margin were also lower, though the year-ago quarter also had negative free cash flow.
Monitor the trajectory of operating cash flow, which swung from positive to negative and is the key driver of free cash flow.