Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter but rose from a year earlier. Free cash flow improved from the preceding quarter as capital expenditure decreased, yet remained weaker than the year-ago level.
- Operating cash flow turned more negative sequentially while capital expenditure fell, resulting in a smaller free cash outflow than the prior quarter. The free cash flow margin remained deeply negative, reflecting continued cash consumption relative to minimal revenue.
- Compared to the prior quarter, revenue was lower, operating cash flow weakened, and capital expenditure declined, but free cash flow improved (less negative). Versus the same quarter a year ago, revenue was higher, operating cash flow was similar, capital expenditure increased slightly, and free cash flow weakened (more negative).
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$23.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$6.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$4.4M
Cash generated by operations before capital spending.
CapEx
$1.7M
Capital spending and related asset purchases.
FCF margin
-15805.1%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $183000 | -$4.0M | $1.1M | -$5.1M | -2782.0% |
| 2024-09-30 | $101000 | -$4.6M | $514000 | -$5.1M | -5040.6% |
| 2024-12-31 | $62000 | -$3.8M | $2.9M | -$6.6M | -10709.7% |
| 2025-03-31 | $39000 | -$4.4M | $1.7M | -$6.2M | -15805.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -36.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4443.6% | 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.
Capital expenditure reduction
Capital expenditure dropped from the prior quarter, which was the primary factor behind the sequential improvement in free cash flow. The company's filing context notes that cash and cash equivalents increased significantly, partly from equity raises, and that it expects to incur additional losses and higher operating expenses.
Lower capital expenditure helped reduce cash outflow, but the company's operating cash burn remains elevated.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned more negative sequentially while capital expenditure fell, resulting in a smaller free cash outflow than the prior quarter. The free cash flow margin remained deeply negative, reflecting continued cash consumption relative to minimal revenue.
Compared to the prior quarter, revenue was lower, operating cash flow weakened, and capital expenditure declined, but free cash flow improved (less negative). Versus the same quarter a year ago, revenue was higher, operating cash flow was similar, capital expenditure increased slightly, and free cash flow weakened (more negative).
Monitor the trajectory of operating cash flow, which became more negative from the prior quarter despite lower capital expenditure.