Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter one year earlier, while operating cash outflow and free cash outflow were lower. The free cash flow margin improved from deeply negative to a small negative figure.
- Operating cash flow was negative, but capital expenditure was positive, resulting in negative free cash flow. The free cash flow margin improved to a small negative, indicating a significant improvement in cash conversion efficiency compared to prior periods.
- Compared to the prior quarter, revenue was higher, operating cash outflow was lower, and free cash outflow was lower. Compared to the same quarter one year earlier, revenue was higher, operating cash outflow was lower, and free cash outflow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$24.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$734000
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$406000
Cash generated by operations before capital spending.
CapEx
$328000
Capital spending and related asset purchases.
FCF margin
-2.2%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $33.8M | -$406000 | $328000 | -$734000 | -2.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -111.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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
Revenue was higher compared to both the prior quarter and the same quarter one year earlier, which reduced the free cash flow deficit.
The free cash flow margin improved from a deeply negative level to a small negative, reflecting a stronger cash conversion profile.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, but capital expenditure was positive, resulting in negative free cash flow. The free cash flow margin improved to a small negative, indicating a significant improvement in cash conversion efficiency compared to prior periods.
Compared to the prior quarter, revenue was higher, operating cash outflow was lower, and free cash outflow was lower. Compared to the same quarter one year earlier, revenue was higher, operating cash outflow was lower, and free cash outflow was lower.
Monitor the increase in accounts receivable and unbilled contract costs, as noted in the liquidity discussion, which may affect future cash conversion.