Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased, but operating cash flow, capital expenditure, and free cash flow all became more negative, causing the free cash flow margin to weaken substantially. Cash consumption outpaced the growth in revenue.
- Revenue rose while operating cash flow turned more negative, indicating that cash conversion weakened as the company spent more cash to generate sales. The free cash flow margin became more negative, reflecting higher cash burn relative to revenue.
- Compared to the prior quarter, revenue was higher but operating cash flow, capital expenditure, free cash flow, and the free cash flow margin all worsened. Versus the same quarter a year ago, revenue improved, yet all cash flow measures turned more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$259.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$127.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$123.1M
Cash generated by operations before capital spending.
CapEx
$4.1M
Capital spending and related asset purchases.
FCF margin
-319.1%
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 | $11.7M | -$39.4M | $3.6M | -$43.0M | -367.4% |
| 2025-03-31 | $7.6M | -$33.0M | $2.3M | -$35.3M | -467.0% |
| 2025-06-30 | $20.7M | -$52.6M | $1.2M | -$53.8M | -259.8% |
| 2025-09-30 | $39.9M | -$123.1M | $4.1M | -$127.2M | -319.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 12.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.4% | 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.
Cash burn widening
Operating cash flow declined more sharply than revenue rose, and capital expenditure increased, leading to a larger negative free cash flow. The free cash flow margin dropped from the prior quarter and from a year ago.
The company's cash position is being consumed at a faster rate even as revenue grows.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow turned more negative, indicating that cash conversion weakened as the company spent more cash to generate sales. The free cash flow margin became more negative, reflecting higher cash burn relative to revenue.
Compared to the prior quarter, revenue was higher but operating cash flow, capital expenditure, free cash flow, and the free cash flow margin all worsened. Versus the same quarter a year ago, revenue improved, yet all cash flow measures turned more negative.
Monitor whether the trend of rising capital expenditure alongside increasingly negative operating cash flow continues in subsequent periods.