Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow remained negative, with a deeper deficit compared to the prior quarter. The free cash flow margin weakened significantly as revenue declined and operating cash outflow increased.
- Revenue was converted into a net operating cash outflow, and after minimal capital expenditure, free cash flow was deeply negative, resulting in a very negative free cash flow margin.
- Compared with the prior quarter, revenue was lower, operating cash flow and free cash flow were more negative, and the margin weakened. Compared with the same quarter one year earlier, revenue was higher, but operating cash flow was more negative; free cash flow data for the year-ago period was not supplied.
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
-$1.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.3M
Cash generated by operations before capital spending.
CapEx
$2859
Capital spending and related asset purchases.
FCF margin
-1379.4%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $92966 | -$1.3M | $2859 | -$1.3M | -1379.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -76.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | 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 decline from prior quarter
Revenue decreased from the prior quarter, while operating cash outflow increased, leading to a larger free cash flow deficit and a worsened margin.
The strengthened negative free cash flow margin indicates higher cash consumption relative to sales.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was converted into a net operating cash outflow, and after minimal capital expenditure, free cash flow was deeply negative, resulting in a very negative free cash flow margin.
Compared with the prior quarter, revenue was lower, operating cash flow and free cash flow were more negative, and the margin weakened. Compared with the same quarter one year earlier, revenue was higher, but operating cash flow was more negative; free cash flow data for the year-ago period was not supplied.
Monitor the trend of revenue and operating cash flow, as both directly affect the free cash flow margin.