Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened sharply as free cash flow turned more negative despite a slight revenue increase from the prior quarter. The free cash flow margin deepened into negative territory compared to both the preceding quarter and the same quarter a year earlier.
- Revenue was slightly higher than the immediately preceding quarter but substantially lower than the same quarter one year earlier. Operating cash flow was more negative, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter. The resulting free cash flow was more negative, and the free cash flow margin weakened significantly.
- Compared with the prior quarter, operating cash flow and free cash flow were lower, while revenue was slightly higher. Compared with the same quarter a year earlier, revenue was lower, operating cash flow and free cash flow were more negative, and the free cash flow margin was weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$102.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$46.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$45.0M
Cash generated by operations before capital spending.
CapEx
$1.1M
Capital spending and related asset purchases.
FCF margin
-1611.0%
The share of revenue converted into free cash flow.
TTM FCF yield
-1.5%
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 | -$45.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $1.1M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$46.0M | 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 |
|---|---|---|---|---|---|
| 2022-09-30 | $1.7M | -$12.8M | $74000 | -$12.9M | -761.9% |
| 2022-12-31 | $2.4M | -$10.9M | $174000 | -$11.1M | -461.8% |
| 2023-03-31 | $1.6M | -$13.6M | $64000 | -$13.6M | -861.5% |
| 2023-06-30 | $1.7M | -$15.5M | $15000 | -$15.5M | -907.1% |
| 2023-09-30 | $2.6M | -$16.9M | $62000 | -$16.9M | -660.7% |
| 2023-12-31 | $2.9M | -$14.7M | $442000 | -$15.2M | -522.4% |
| 2024-03-31 | $2.5M | -$12.1M | $305000 | -$12.4M | -504.0% |
| 2024-06-30 | $2.2M | -$14.5M | $545000 | -$15.0M | -687.7% |
| 2024-09-30 | $1.9M | -$18.1M | $306000 | -$18.4M | -982.8% |
| 2024-12-31 | $2.3M | $2.0M | $950000 | $1.1M | 46.2% |
| 2025-03-31 | $15.0M | -$19.3M | $438000 | -$19.7M | -131.4% |
| 2025-06-30 | $3.1M | -$15.3M | $749000 | -$16.0M | -518.1% |
| 2025-09-30 | $3.7M | -$19.0M | $1.0M | -$20.1M | -536.5% |
| 2025-12-31 | $2.8M | -$18.4M | $1.7M | -$20.0M | -727.9% |
| 2026-03-31 | $2.9M | -$45.0M | $1.1M | -$46.0M | -1611.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 250.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 37.8% | 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.
Widening operating cash outflow
Operating cash flow was substantially more negative than both the prior quarter and the year-ago quarter, even as revenue remained relatively stable compared to the prior quarter. This widening outflow was the primary observable factor behind the decline in free cash flow.
The increased cash burn drove free cash flow deeper into negative territory and compressed the free cash flow margin further.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the immediately preceding quarter but substantially lower than the same quarter one year earlier. Operating cash flow was more negative, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter. The resulting free cash flow was more negative, and the free cash flow margin weakened significantly.
Compared with the prior quarter, operating cash flow and free cash flow were lower, while revenue was slightly higher. Compared with the same quarter a year earlier, revenue was lower, operating cash flow and free cash flow were more negative, and the free cash flow margin was weaker.
Monitor the trajectory of operating cash flow, which deteriorated significantly this quarter.
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 | $6.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | -1.5% | 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. |