Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose while operating cash flow and free cash flow remained negative, though the free cash flow margin improved. Capital expenditure increased modestly from the prior quarter.
- Despite higher revenue, operating cash flow was more negative than the prior quarter, resulting in a wider gap between revenue and cash generation. Capital expenditure rose, contributing to a larger free cash flow deficit, but the margin improved as revenue grew faster than the cash outflow rate.
- Compared to the immediately preceding quarter, revenue improved, operating cash flow weakened further, and free cash flow was lower, though the free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, but operating cash flow was more negative; capital expenditure and free cash flow were not available for that period.
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
-$1.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.0M
Cash generated by operations before capital spending.
CapEx
$11902
Capital spending and related asset purchases.
FCF margin
-844.7%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $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% |
| 2024-03-31 | $124841 | -$1.0M | $11902 | -$1.1M | -844.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 22.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.5% | 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 without cash conversion
Revenue increased strongly from both the prior quarter and the year-ago quarter, yet operating cash flow became more negative. This indicates that the revenue growth did not translate into cash inflows during the period.
The widening gap between revenue and operating cash flow may signal that cash collections lag behind revenue recognition, which could pressure liquidity unless the trend reverses.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was more negative than the prior quarter, resulting in a wider gap between revenue and cash generation. Capital expenditure rose, contributing to a larger free cash flow deficit, but the margin improved as revenue grew faster than the cash outflow rate.
Compared to the immediately preceding quarter, revenue improved, operating cash flow weakened further, and free cash flow was lower, though the free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, but operating cash flow was more negative; capital expenditure and free cash flow were not available for that period.
Monitor whether the trend of negative operating cash flow persists as revenue continues to grow.