Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned more negative compared to both the prior quarter and the same period a year ago, driven primarily by a larger negative operating cash flow despite a slight reduction in capital expenditure. Revenue was lower than the prior quarter but higher than the year-ago quarter.
- The conversion of revenue into cash was negative, with operating cash flow and free cash flow both in deficit; the margin worsened as the decline in operating cash flow outpaced the change in revenue.
- Compared to the immediately preceding quarter, free cash flow and margin weakened, while capital expenditure decreased. Versus the same quarter one year earlier, free cash flow also weakened, and operating cash flow was more negative, though revenue increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$75.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$22.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$21.6M
Cash generated by operations before capital spending.
CapEx
$584000
Capital spending and related asset purchases.
FCF margin
-18.1%
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 |
|---|---|---|---|---|---|
| 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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 0.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.9B | 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 Decline
Operating cash flow became more negative than in both the prior quarter and the year-ago quarter, despite a relatively stable revenue base.
The weakening operating cash flow was the primary driver of the free cash flow deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion of revenue into cash was negative, with operating cash flow and free cash flow both in deficit; the margin worsened as the decline in operating cash flow outpaced the change in revenue.
Compared to the immediately preceding quarter, free cash flow and margin weakened, while capital expenditure decreased. Versus the same quarter one year earlier, free cash flow also weakened, and operating cash flow was more negative, though revenue increased.
Monitor the trajectory of operating cash flow, as its further decline would pressure free cash flow.