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, while operating cash outflow narrowed significantly from the prior quarter. Free cash flow remained negative but the margin improved, reflecting a smaller cash deficit relative to revenue.
- Cash conversion was negative, as operating cash flow did not cover capital expenditure, resulting in a free cash flow deficit. The free cash flow margin, while negative, improved from the prior quarter and the same quarter last year.
- Compared to the prior quarter, operating cash flow and free cash flow improved, and revenue was higher. Versus the same quarter last year, revenue was higher, but operating cash flow and free cash flow were lower (more negative).
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$22.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$6.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$6.1M
Cash generated by operations before capital spending.
CapEx
$176000
Capital spending and related asset purchases.
FCF margin
-603.8%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $1.0M | -$6.1M | $176000 | -$6.2M | -603.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 151.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.0% | 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
Operating cash outflow decreased substantially from the prior quarter, shifting from a larger deficit to a smaller one. This was the most significant observable change among the financial metrics.
The reduction in operating cash outflow drove a significant improvement in free cash flow compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion was negative, as operating cash flow did not cover capital expenditure, resulting in a free cash flow deficit. The free cash flow margin, while negative, improved from the prior quarter and the same quarter last year.
Compared to the prior quarter, operating cash flow and free cash flow improved, and revenue was higher. Versus the same quarter last year, revenue was higher, but operating cash flow and free cash flow were lower (more negative).
Monitor the impact of the acquisition of TikTok Money Machine assets and the consulting agreements with TikTokers on future cash flows.