Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter but increased from a year ago. Free cash flow was more negative than both the prior quarter and the year-ago quarter, driven by a larger operating cash outflow and higher capital expenditure.
- Operating cash flow was negative, and capital expenditure was elevated, resulting in a deeply negative free cash flow and a weakened free cash flow margin. The cash conversion from revenue was poor, as operating cash flow consumed a significant portion of revenue.
- Compared to the prior quarter, revenue was lower, operating cash flow turned from near break-even to a larger outflow, capital expenditure increased, and free cash flow and margin both worsened. Versus the same quarter last year, revenue was higher, but operating cash flow shifted from a small outflow to a much larger outflow, capital expenditure rose, and free cash flow and margin deteriorated.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$177.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$82.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$54.2M
Cash generated by operations before capital spending.
CapEx
$28.7M
Capital spending and related asset purchases.
FCF margin
-67.6%
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 | $106.3M | -$13.0M | $15.3M | -$28.3M | -26.7% |
| 2024-09-30 | $104.8M | -$30.9M | $11.0M | -$41.9M | -40.0% |
| 2024-12-31 | $132.4M | -$2.4M | $21.6M | -$23.9M | -18.1% |
| 2025-03-31 | $122.6M | -$54.2M | $28.7M | -$82.9M | -67.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 23.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$42.8M | 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 Deterioration
Operating cash flow was the strongest observable driver of the free cash flow decline, moving from a small outflow in both comparison periods to a much larger outflow this quarter. This change, combined with higher capital expenditure, drove free cash flow deeper into negative territory.
The larger operating cash outflow was the primary factor behind the weakened free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and capital expenditure was elevated, resulting in a deeply negative free cash flow and a weakened free cash flow margin. The cash conversion from revenue was poor, as operating cash flow consumed a significant portion of revenue.
Compared to the prior quarter, revenue was lower, operating cash flow turned from near break-even to a larger outflow, capital expenditure increased, and free cash flow and margin both worsened. Versus the same quarter last year, revenue was higher, but operating cash flow shifted from a small outflow to a much larger outflow, capital expenditure rose, and free cash flow and margin deteriorated.
Monitor the trajectory of operating cash flow, as it shifted from near break-even to a substantial outflow this quarter.