Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but operating cash flow turned more negative, resulting in a larger free cash flow deficit. The free cash flow margin weakened further from the prior quarter and the year-ago period.
- Operating cash flow was negative and significantly larger than revenue, indicating that cash conversion from revenue was deeply negative. Capital expenditure remained substantial relative to revenue, but the primary drain was the operating cash outflow, producing a free cash flow margin that was deeply negative.
- Compared to the prior quarter, revenue was higher but operating cash flow was lower, and capital expenditure was lower, yet free cash flow was lower due to the larger operating cash outflow. Relative to the same quarter last year, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$13.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$4.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$4.5M
Cash generated by operations before capital spending.
CapEx
$375000
Capital spending and related asset purchases.
FCF margin
-2569.5%
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 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 29.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 196.9% | 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.
Worsening Operating Cash Flow
The increase in operating cash outflow was the strongest observable driver of the lower free cash flow, more than offsetting the benefit of reduced capital expenditure. The filing notes forward-looking statements regarding liquidity and capital resources, including risks related to financing and expenditure management, but does not provide specific causes for the current quarter's cash flow changes.
The larger negative operating cash flow overwhelmed the reduction in capital spending, resulting in a deeper free cash flow deficit compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative and significantly larger than revenue, indicating that cash conversion from revenue was deeply negative. Capital expenditure remained substantial relative to revenue, but the primary drain was the operating cash outflow, producing a free cash flow margin that was deeply negative.
Compared to the prior quarter, revenue was higher but operating cash flow was lower, and capital expenditure was lower, yet free cash flow was lower due to the larger operating cash outflow. Relative to the same quarter last year, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower.
Monitor whether operating cash flow improves or continues to deteriorate, as it was the dominant factor in the widening free cash flow deficit.