Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased substantially compared to both the prior quarter and the same quarter last year. Free cash flow remained negative but the margin improved significantly.
- Operating cash flow as a proportion of revenue decreased, indicating weaker cash conversion efficiency. Capital expenditure stayed high relative to cash flow, resulting in negative free cash flow.
- Sequentially, revenue rose while operating cash flow was stable, and free cash flow margin improved. Year-over-year, revenue increased sharply, but operating cash flow fell and free cash flow margin improved from a more negative level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$86.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$28.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.5M
Cash generated by operations before capital spending.
CapEx
$32.6M
Capital spending and related asset purchases.
FCF margin
-77.3%
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 |
|---|---|---|---|---|---|
| 2022-11-30 | $12.3M | $10.7M | $38.6M | -$27.9M | -226.5% |
| 2023-02-28 | $14.1M | $26.2M | $25.9M | $256000 | 1.8% |
| 2023-05-31 | $22.0M | $4.6M | $35.1M | -$30.5M | -138.3% |
| 2023-08-31 | $36.3M | $4.5M | $32.6M | -$28.1M | -77.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 236.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 89.7% | 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.
Revenue growth
Revenue increased significantly from both the prior quarter and the year-ago period, driving an improvement in free cash flow margin despite negative absolute free cash flow.
Higher revenue provides a larger base from which operating cash flow could potentially improve if spending patterns change.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue decreased, indicating weaker cash conversion efficiency. Capital expenditure stayed high relative to cash flow, resulting in negative free cash flow.
Sequentially, revenue rose while operating cash flow was stable, and free cash flow margin improved. Year-over-year, revenue increased sharply, but operating cash flow fell and free cash flow margin improved from a more negative level.
Monitor the trend of operating cash flow relative to revenue, as conversion efficiency declined.