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. However, operating cash flow and free cash flow turned negative, resulting in a significantly weakened free cash flow margin.
- Despite higher revenue, operating cash flow shifted from positive to negative, and capital expenditure rose slightly, leading to a large negative free cash flow and a deeply negative free cash flow margin.
- Compared to the prior quarter, revenue improved but operating cash flow weakened sharply from positive to negative, and free cash flow margin dropped from positive to negative. Versus the same quarter last year, revenue was higher, while operating cash flow and free cash flow both turned from positive to negative, and the margin declined substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$244.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$126.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$119.8M
Cash generated by operations before capital spending.
CapEx
$6.7M
Capital spending and related asset purchases.
FCF margin
-37.9%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $200.7M | -$39.3M | $8.0M | -$47.2M | -23.5% |
| 2025-03-31 | $255.7M | -$105.6M | $2.1M | -$107.7M | -42.1% |
| 2025-06-30 | $314.6M | $44.2M | $7.5M | $36.6M | 11.6% |
| 2025-09-30 | $334.2M | -$119.8M | $6.7M | -$126.5M | -37.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 158.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 Reversal
Operating cash flow moved from positive in both the prior quarter and the year-ago quarter to negative this quarter, despite higher revenue. This shift is the primary factor behind the negative free cash flow and margin.
The negative operating cash flow directly drove free cash flow deeply negative and eliminated the positive margin seen in prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow shifted from positive to negative, and capital expenditure rose slightly, leading to a large negative free cash flow and a deeply negative free cash flow margin.
Compared to the prior quarter, revenue improved but operating cash flow weakened sharply from positive to negative, and free cash flow margin dropped from positive to negative. Versus the same quarter last year, revenue was higher, while operating cash flow and free cash flow both turned from positive to negative, and the margin declined substantially.
Monitor whether operating cash flow can return to positive levels in upcoming quarters, given the current negative swing.