Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined sharply from the prior quarter, though operating cash flow improved compared to the same quarter one year earlier. Free cash flow remained negative, with a margin that was weaker sequentially but stronger year over year.
- The company generated negative operating cash flow and free cash flow, indicating cash consumption during the quarter. Capital expenditure was modest relative to revenue, but the large negative free cash flow margin highlights significant cash outflows from operations.
- Compared to the prior quarter, revenue decreased substantially while operating cash flow became more negative. Compared to the same quarter one year earlier, revenue increased, operating cash flow was more negative, but free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$26.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$9.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$8.7M
Cash generated by operations before capital spending.
CapEx
$264000
Capital spending and related asset purchases.
FCF margin
-263.2%
The share of revenue converted into free cash flow.
TTM FCF yield
-7.8%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-06-30 | $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% |
| 2026-03-31 | $3.4M | -$8.7M | $264000 | -$9.0M | -263.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 16.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.7% | 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.
Acquisition-related cash outflows
According to the filing, cash used in investing activities increased significantly due to the acquisition of API completed in January 2026.
This acquisition may continue to affect cash flows and operational focus in coming quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company generated negative operating cash flow and free cash flow, indicating cash consumption during the quarter. Capital expenditure was modest relative to revenue, but the large negative free cash flow margin highlights significant cash outflows from operations.
Compared to the prior quarter, revenue decreased substantially while operating cash flow became more negative. Compared to the same quarter one year earlier, revenue increased, operating cash flow was more negative, but free cash flow margin improved.
Monitor the impact of the recent acquisition on operating cash flow and capital expenditure requirements.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $346.2M | Used as the denominator for FCF yield. |
| TTM FCF yield | -7.8% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.