Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined versus both the prior quarter and the same quarter last year. Operating cash flow, free cash flow, and free cash flow margin all weakened compared to both periods.
- Operating cash flow was negative and capital expenditure was positive, resulting in a free cash flow deficit that was larger than the operating cash flow deficit. The free cash flow margin was negative, indicating cash consumption exceeded revenue.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow was more negative, capital expenditure was higher, and free cash flow and free cash flow margin both weakened. Versus the same quarter one year earlier, all metrics deteriorated: revenue was lower, operating cash flow was more negative, capital expenditure was higher, and free cash flow and free cash flow margin were both worse.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$142.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$41.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$38.8M
Cash generated by operations before capital spending.
CapEx
$2.9M
Capital spending and related asset purchases.
FCF margin
-59.4%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $76.7M | -$29.0M | $6.5M | -$35.4M | -46.2% |
| 2025-03-29 | $68.7M | -$26.1M | $4.5M | -$30.6M | -44.6% |
| 2025-06-28 | $75.0M | -$33.2M | $1.9M | -$35.1M | -46.9% |
| 2025-09-27 | $70.2M | -$38.8M | $2.9M | -$41.7M | -59.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 37.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash Flow Deterioration
The strongest observable driver is the widening free cash flow deficit, driven by a more negative operating cash flow combined with higher capital expenditure. This pattern is consistent across both sequential and year-over-year comparisons.
The cash conversion cycle has weakened, with free cash flow margin declining further into negative territory.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative and capital expenditure was positive, resulting in a free cash flow deficit that was larger than the operating cash flow deficit. The free cash flow margin was negative, indicating cash consumption exceeded revenue.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow was more negative, capital expenditure was higher, and free cash flow and free cash flow margin both weakened. Versus the same quarter one year earlier, all metrics deteriorated: revenue was lower, operating cash flow was more negative, capital expenditure was higher, and free cash flow and free cash flow margin were both worse.
Monitor the trajectory of operating cash flow, as it has become more negative sequentially and year-over-year.