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. Free cash flow remained negative but improved, with capital expenditure lower than in both comparable periods.
- Operating cash flow was positive but lower than the year-ago quarter, while capital expenditure was lower than both prior periods. Free cash flow was negative, and the free cash flow margin improved relative to the preceding quarter and the year-ago quarter.
- Compared to the prior quarter, revenue was higher, capital expenditure was lower, and free cash flow was less negative. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was lower, capital expenditure was lower, and the free cash flow margin was improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$67.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$8.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.5M
Cash generated by operations before capital spending.
CapEx
$13.2M
Capital spending and related asset purchases.
FCF margin
-20.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-11-30 | $42.2M | $4.5M | $13.2M | -$8.7M | -20.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 82.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 31.4% | 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.
Lower Capital Expenditure
Capital expenditure in the current quarter was lower than both the prior quarter and the year-ago quarter, and the free cash flow deficit narrowed alongside this reduction.
The lower capital expenditure was associated with an improved free cash flow position this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was positive but lower than the year-ago quarter, while capital expenditure was lower than both prior periods. Free cash flow was negative, and the free cash flow margin improved relative to the preceding quarter and the year-ago quarter.
Compared to the prior quarter, revenue was higher, capital expenditure was lower, and free cash flow was less negative. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was lower, capital expenditure was lower, and the free cash flow margin was improved.
Monitor the trajectory of operating cash flow, which remained stable while revenue increased.