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 a year ago, but operating cash flow remained negative. The cash conversion weakened substantially from the prior year, resulting in a deeply negative free cash flow margin.
- Revenue was higher than both prior periods, yet operating cash flow, while improving from the prior quarter, was more negative than a year ago. After minimal capital expenditure, free cash flow turned substantially negative, producing a large negative margin.
- Compared to the prior quarter, revenue was higher and operating cash flow improved (less negative). Compared to the same quarter a year ago, revenue was higher but operating cash flow weakened (more negative).
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
-$860116
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$854100
Cash generated by operations before capital spending.
CapEx
$6016
Capital spending and related asset purchases.
FCF margin
-1063.8%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $61135 | -$829946 | n/a | n/a | n/a |
| 2023-06-30 | $74912 | -$1.1M | n/a | n/a | n/a |
| 2023-09-30 | $60135 | -$987478 | n/a | n/a | n/a |
| 2023-12-31 | $80856 | -$854100 | $6016 | -$860116 | -1063.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 63.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.4% | 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.
Operating Cash Flow Improvement from Prior Quarter
Operating cash flow was less negative than the prior quarter, while revenue grew. However, the same metric was much more negative than the same quarter a year ago, indicating that the sequential improvement may not be sustainable.
The sequential improvement in operating cash flow is the strongest positive signal, but the severe year-over-year deterioration keeps the overall cash conversion under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both prior periods, yet operating cash flow, while improving from the prior quarter, was more negative than a year ago. After minimal capital expenditure, free cash flow turned substantially negative, producing a large negative margin.
Compared to the prior quarter, revenue was higher and operating cash flow improved (less negative). Compared to the same quarter a year ago, revenue was higher but operating cash flow weakened (more negative).
Monitor the trend of operating cash flow relative to revenue, as the year-over-year gap widened significantly.