Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sharply from both the prior quarter and the year-ago quarter, yet operating cash flow remained deeply negative and free cash flow worsened. The free cash flow margin improved relative to the prior quarter but remained severely negative compared to the year-ago period.
- Despite higher revenue, operating cash flow was negative and capital expenditure rose, resulting in a larger free cash outflow. The free cash flow margin, while improved from the prior quarter's extreme level, remained deeply negative, indicating cash conversion was weak.
- Compared to the prior quarter, revenue was higher, operating cash flow was more negative, capital expenditure was higher, and free cash flow was more negative, though the margin improved. Versus the same quarter last year, revenue was higher, operating cash flow was more negative, capital expenditure was higher, and free cash flow was more negative, with a slightly improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$17.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$7.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$6.4M
Cash generated by operations before capital spending.
CapEx
$1.0M
Capital spending and related asset purchases.
FCF margin
-922.0%
The share of revenue converted into free cash flow.
TTM FCF yield
-3.8%
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 | -$6.4M | Cash generated by operations before capital spending. |
| Capital expenditures | $1.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$7.4M | 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 |
|---|---|---|---|---|---|
| 2025-03-31 | $326455 | -$2.8M | $677547 | -$3.5M | -1074.5% |
| 2025-06-30 | $209114 | -$1.8M | $124999 | -$2.0M | -944.1% |
| 2025-09-30 | $159411 | -$2.5M | $488501 | -$3.0M | -1875.8% |
| 2025-12-31 | $190420 | -$4.5M | $375000 | -$4.9M | -2569.5% |
| 2026-03-31 | $802353 | -$6.4M | $1.0M | -$7.4M | -922.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 82.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 124.6% | 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.
Revenue Growth vs. Cash Burn
Revenue increased substantially from both comparison periods, yet operating cash flow became more negative, and free cash flow worsened. The improvement in free cash flow margin was driven by the revenue base effect rather than a reduction in cash outflows.
The company's cash conversion remains strained, as higher revenue has not alleviated the negative operating cash flow and rising capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was negative and capital expenditure rose, resulting in a larger free cash outflow. The free cash flow margin, while improved from the prior quarter's extreme level, remained deeply negative, indicating cash conversion was weak.
Compared to the prior quarter, revenue was higher, operating cash flow was more negative, capital expenditure was higher, and free cash flow was more negative, though the margin improved. Versus the same quarter last year, revenue was higher, operating cash flow was more negative, capital expenditure was higher, and free cash flow was more negative, with a slightly improved margin.
Monitor whether the trend of rising revenue can translate into positive operating cash flow, given the persistent cash burn from operations and elevated capital expenditure.
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 | $453.3M | Used as the denominator for FCF yield. |
| TTM FCF yield | -3.8% | 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.
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. |