Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative and widened sequentially despite a slight decline in revenue, reflecting a large swing in operating cash flow from positive to negative. Compared to the same quarter last year, the free cash flow deficit narrowed while revenue was lower.
- Revenue was modestly lower than the prior quarter, but operating cash flow turned from positive to deeply negative, causing free cash flow margin to drop from positive to negative. Capital expenditure remained stable and small relative to operating cash flow, so the cash conversion weakness was driven entirely by the operating cash flow change.
- Compared to the immediately preceding quarter, free cash flow shifted from positive to negative as operating cash flow reversed from an inflow to an outflow, while revenue was slightly lower. Versus the same quarter one year earlier, free cash flow was less negative despite revenue being significantly lower, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$250.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$246.0M
Cash generated by operations before capital spending.
CapEx
$4.0M
Capital spending and related asset purchases.
FCF margin
-34.7%
The share of revenue converted into free cash flow.
TTM FCF yield
23.4%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-06-30 | $1.6B | $823.0M | $2.0M | $821.0M | 52.4% |
| 2025-09-30 | $915.0M | $435.0M | $3.0M | $432.0M | 47.2% |
| 2025-12-31 | $736.0M | $70.0M | $3.0M | $67.0M | 9.1% |
| 2026-03-31 | $720.0M | -$246.0M | $4.0M | -$250.0M | -34.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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.
Operating Cash Flow Swing
Operating cash flow moved from a positive amount in the prior quarter to a significant negative amount in the current quarter, while revenue was only slightly lower. This large swing overwhelmed the small capital expenditure and drove free cash flow deeply negative.
The cash conversion profile weakened materially, reversing the prior quarter's positive free cash flow margin to a negative one.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was modestly lower than the prior quarter, but operating cash flow turned from positive to deeply negative, causing free cash flow margin to drop from positive to negative. Capital expenditure remained stable and small relative to operating cash flow, so the cash conversion weakness was driven entirely by the operating cash flow change.
Compared to the immediately preceding quarter, free cash flow shifted from positive to negative as operating cash flow reversed from an inflow to an outflow, while revenue was slightly lower. Versus the same quarter one year earlier, free cash flow was less negative despite revenue being significantly lower, and the free cash flow margin improved.
Monitor whether operating cash flow can return to positive levels in the coming quarters, as it was the sole driver of the free cash flow swing.
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 | $4.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | 23.4% | 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.