Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. However, operating cash flow and free cash flow remained negative and were larger in magnitude than both comparison periods.
- Operating cash flow was negative and capital expenditure was negligible, resulting in negative free cash flow. The free cash flow margin improved relative to both the prior quarter and the year-ago quarter, as revenue growth outpaced the increase in cash outflows.
- Compared to the prior quarter, revenue was higher and the free cash flow margin was less negative. Compared to the same quarter last year, revenue was also higher and the margin was less negative, though the absolute free cash flow was more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$27.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$10.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$10.4M
Cash generated by operations before capital spending.
CapEx
$0
Capital spending and related asset purchases.
FCF margin
-357.2%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $902000 | -$4.3M | $7000 | -$4.3M | -472.0% |
| 2025-03-31 | $629000 | -$6.0M | $52000 | -$6.1M | -966.0% |
| 2025-06-30 | $1.7M | -$6.8M | $0 | -$6.8M | -392.3% |
| 2025-09-30 | $2.9M | -$10.4M | $0 | -$10.4M | -357.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 31.5% | 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.
Revenue Growth vs. Cash Burn
Revenue increased sequentially and year-over-year, but operating cash flow remained negative and grew in magnitude. The improvement in free cash flow margin was driven by revenue growth, yet cash conversion remains a challenge.
The company's ability to sustain revenue growth while reducing cash outflows will be critical for future cash flow trends.
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 negligible, resulting in negative free cash flow. The free cash flow margin improved relative to both the prior quarter and the year-ago quarter, as revenue growth outpaced the increase in cash outflows.
Compared to the prior quarter, revenue was higher and the free cash flow margin was less negative. Compared to the same quarter last year, revenue was also higher and the margin was less negative, though the absolute free cash flow was more negative.
Monitor the trend in net loss and its effect on operating cash flow, as the filing notes that an increase in net loss was a primary reason for higher cash used in operations.