Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative this quarter, weakened from the prior quarter but improved from the same quarter last year. Revenue decreased sequentially and increased year-over-year, with operating cash flow turning negative.
- Operating cash flow was negative, reversing from positive in the prior quarter, leading to negative free cash flow driven by capital expenditure of similar scale. The free cash flow margin was negative, a decline from the prior quarter's positive margin but narrower than the year-ago quarter's negative margin.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, and free cash flow turned from positive to negative. Compared to the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow improved from more negative levels.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$33.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$29.4M
Cash generated by operations before capital spending.
CapEx
$3.7M
Capital spending and related asset purchases.
FCF margin
-7.0%
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 |
|---|---|---|---|---|---|
| 2025-05-03 | $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% |
| 2026-01-31 | $471.8M | -$29.4M | $3.7M | -$33.1M | -7.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -497.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$128.3M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue and Cash Flow Divergence
Revenue was higher year-over-year yet operating cash flow remained negative, indicating cash conversion weakened relative to sales. The sequential drop in revenue from the prior quarter coincided with a large swing in operating cash flow.
This divergence between revenue growth and cash generation creates uncertainty about the sustainability of operating performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, reversing from positive in the prior quarter, leading to negative free cash flow driven by capital expenditure of similar scale. The free cash flow margin was negative, a decline from the prior quarter's positive margin but narrower than the year-ago quarter's negative margin.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, and free cash flow turned from positive to negative. Compared to the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow improved from more negative levels.
Monitor whether operating cash flow can return to positive and sustain the revenue levels seen in the prior quarter.