Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter, free cash flow turned positive after two consecutive negative quarters, driven by a swing in operating cash flow. Revenue increased modestly, and capital expenditure remained low, resulting in a positive free cash flow margin.
- With higher revenue and operating cash flow turning positive, the company converted revenue into cash more effectively. Free cash flow margin improved to positive territory, reflecting better cash generation relative to revenue.
- Compared to the immediately preceding quarter, free cash flow improved from a negative to a positive figure, while operating cash flow also reversed. Compared to the same quarter a year ago, free cash flow similarly turned positive, with both operating cash flow and capital expenditure moving in a favorable direction.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$57.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$13.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$14.0M
Cash generated by operations before capital spending.
CapEx
$952000
Capital spending and related asset purchases.
FCF margin
10.5%
The share of revenue converted into free cash flow.
TTM FCF yield
n/a
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $14.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $952000 | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $13.0M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $122.1M | -$20.8M | $878000 | -$21.7M | -17.8% |
| 2022-09-30 | $125.4M | -$1.5M | $332000 | -$1.8M | -1.4% |
| 2022-12-31 | $132.6M | -$18.2M | $635000 | -$18.8M | -14.2% |
| 2023-03-31 | $121.9M | $37.4M | $499000 | $36.9M | 30.3% |
| 2023-06-30 | $120.4M | -$18.5M | $639000 | -$19.1M | -15.9% |
| 2023-09-30 | $129.5M | -$7.4M | $1.5M | -$8.8M | -6.8% |
| 2023-12-31 | $124.5M | $1.2M | $347000 | $837000 | 0.7% |
| 2024-03-31 | $115.2M | $28.6M | $1.5M | $27.0M | 23.5% |
| 2024-06-30 | $111.4M | -$23.3M | $723000 | -$24.1M | -21.6% |
| 2024-09-30 | $116.1M | -$41.0M | $426000 | -$41.4M | -35.7% |
| 2024-12-31 | $120.7M | -$17.3M | $284000 | -$17.6M | -14.6% |
| 2025-03-31 | $111.1M | -$2.4M | $2.7M | -$5.1M | -4.6% |
| 2025-06-30 | $114.5M | -$34.9M | $2.1M | -$37.0M | -32.3% |
| 2025-09-30 | $128.7M | -$8.3M | $2.8M | -$11.1M | -8.6% |
| 2025-12-31 | $123.0M | -$21.6M | $584000 | -$22.2M | -18.1% |
| 2026-03-31 | $124.3M | $14.0M | $952000 | $13.0M | 10.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -0.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Recovery
Operating cash flow improved from negative to positive, the primary factor behind the free cash flow turn. The balance sheet within the filing shows a decrease in accounts receivable compared to the prior quarter.
This recovery moved free cash flow from a deficit to a surplus.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With higher revenue and operating cash flow turning positive, the company converted revenue into cash more effectively. Free cash flow margin improved to positive territory, reflecting better cash generation relative to revenue.
Compared to the immediately preceding quarter, free cash flow improved from a negative to a positive figure, while operating cash flow also reversed. Compared to the same quarter a year ago, free cash flow similarly turned positive, with both operating cash flow and capital expenditure moving in a favorable direction.
Monitor the sustainability of accounts receivable levels, as the sharp decline from the prior quarter may not recur.
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 | n/a | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | 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.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |