Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sharply from both the prior quarter and the same quarter last year. However, operating cash flow and free cash flow turned significantly more negative, resulting in a free cash flow margin that remained deeply negative and was roughly stable compared to the prior quarter.
- Revenue was positive, but operating cash flow was negative and far larger than the revenue amount, indicating a substantial cash outflow relative to sales. Capital expenditure was a small outflow, so the negative free cash flow was driven almost entirely by the negative operating cash flow.
- Compared to the immediate prior quarter, revenue was higher but operating cash flow and free cash flow were both lower, and the free cash flow margin was roughly stable in absolute terms. Compared to the same quarter one year earlier, revenue was higher, while operating cash flow was lower; capital expenditure and free cash flow data for the year-ago quarter were not supplied.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$16.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$13.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$13.2M
Cash generated by operations before capital spending.
CapEx
$185239
Capital spending and related asset purchases.
FCF margin
-1360.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-09-30 | $984000 | -$13.2M | $185239 | -$13.4M | -1360.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 196.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.8% | 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.
Negative Operating Cash Flow
Revenue grew substantially from both the prior quarter and the year-ago quarter, yet operating cash flow turned deeply negative, producing a worse cash conversion outcome.
The negative operating cash flow overwhelmed the positive revenue growth, resulting in a large free cash flow deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was positive, but operating cash flow was negative and far larger than the revenue amount, indicating a substantial cash outflow relative to sales. Capital expenditure was a small outflow, so the negative free cash flow was driven almost entirely by the negative operating cash flow.
Compared to the immediate prior quarter, revenue was higher but operating cash flow and free cash flow were both lower, and the free cash flow margin was roughly stable in absolute terms. Compared to the same quarter one year earlier, revenue was higher, while operating cash flow was lower; capital expenditure and free cash flow data for the year-ago quarter were not supplied.
Monitor the magnitude of operating cash outflows relative to revenue, as the current period saw cash consumption far exceeding revenue.