Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, improving from a deficit in the prior quarter and from a lower level in the same quarter last year. The cash conversion margin strengthened as revenue and operating cash flow increased.
- Revenue was higher than both the prior quarter and the year-ago quarter, while operating cash flow swung from negative to positive. Capital expenditure remained modest, resulting in a positive free cash flow and a higher free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved. Compared to the same quarter one year earlier, these metrics were also higher, with the exception of capital expenditure which was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$4.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$61.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$66.2M
Cash generated by operations before capital spending.
CapEx
$4.3M
Capital spending and related asset purchases.
FCF margin
10.4%
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 |
|---|---|---|---|---|---|
| 2025-01-25 | $419.7M | -$41.9M | $2.8M | -$44.7M | -10.7% |
| 2025-05-03 | $281.8M | $52.6M | $3.1M | $49.5M | 17.6% |
| 2025-08-02 | $274.2M | -$67.6M | $3.7M | -$71.3M | -26.0% |
| 2025-11-01 | $598.2M | $66.2M | $4.3M | $61.9M | 10.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 247.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$110.8M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue was higher than both the prior quarter and the year-ago quarter, which was the most apparent factor behind the improved cash generation.
The higher revenue provided the basis for the positive operating cash flow and free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, while operating cash flow swung from negative to positive. Capital expenditure remained modest, resulting in a positive free cash flow and a higher free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved. Compared to the same quarter one year earlier, these metrics were also higher, with the exception of capital expenditure which was slightly higher.
Monitor the consistency of operating cash flow in subsequent quarters following the sharp turnaround from negative to positive.