Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable, but operating cash flow turned significantly negative, resulting in a large free cash flow deficit. Cash conversion weakened markedly versus both the prior quarter and the year-ago period.
- Operating cash flow was deeply negative and far exceeded capital expenditure, driving free cash flow and its margin into a large deficit. Revenue was essentially flat, so the deterioration stemmed from weaker cash generation from operations.
- Compared to the prior quarter, operating cash flow worsened from near break-even to a substantial outflow, and free cash flow margin dropped sharply. Versus the same quarter last year, operating cash flow also deteriorated, as the margin became more negative despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$101.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$37.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$34.9M
Cash generated by operations before capital spending.
CapEx
$2.1M
Capital spending and related asset purchases.
FCF margin
-32.3%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -0.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.1B | 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 deterioration
Operating cash flow moved from near zero in the prior quarter to a large negative figure, overwhelming modest capital expenditure. This shift was the primary observable factor behind the negative free cash flow.
It caused free cash flow margin to turn deeply negative, contrasting with prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was deeply negative and far exceeded capital expenditure, driving free cash flow and its margin into a large deficit. Revenue was essentially flat, so the deterioration stemmed from weaker cash generation from operations.
Compared to the prior quarter, operating cash flow worsened from near break-even to a substantial outflow, and free cash flow margin dropped sharply. Versus the same quarter last year, operating cash flow also deteriorated, as the margin became more negative despite higher revenue.
Monitor operating cash flow trajectory, as it swung to a substantial outflow despite stable revenue.