Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sequentially and year-over-year, yet free cash flow turned more negative due to a larger operating cash outflow. The free cash flow margin weakened compared with both the prior quarter and the same quarter one year earlier.
- Revenue rose while operating cash flow became more negative, resulting in a free cash flow margin that was lower than the prior quarter and the year-ago period. Capital expenditure was zero, so the entire free cash flow movement was driven by the operating cash flow shortfall.
- Compared with the immediately preceding quarter, revenue was higher but free cash flow was lower and the margin weakened. Versus the same quarter one year earlier, revenue was also higher while free cash flow and margin both deteriorated.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$53.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$12.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$12.0M
Cash generated by operations before capital spending.
CapEx
$0
Capital spending and related asset purchases.
FCF margin
-28.5%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $37.6M | -$24.5M | $149000 | -$24.6M | -65.4% |
| 2022-09-30 | $40.7M | -$6.4M | $228000 | -$6.6M | -16.3% |
| 2022-12-31 | $40.4M | -$10.5M | $33000 | -$10.6M | -26.2% |
| 2023-03-31 | $42.2M | -$12.0M | $0 | -$12.0M | -28.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 38.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$172.3M | 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 Deterioration
Operating cash flow was more negative than in both the prior quarter and the year-ago quarter, despite higher revenue. This was the primary factor behind the lower free cash flow and margin.
The operating cash flow decline directly reduced free cash flow and widened the negative margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow became more negative, resulting in a free cash flow margin that was lower than the prior quarter and the year-ago period. Capital expenditure was zero, so the entire free cash flow movement was driven by the operating cash flow shortfall.
Compared with the immediately preceding quarter, revenue was higher but free cash flow was lower and the margin weakened. Versus the same quarter one year earlier, revenue was also higher while free cash flow and margin both deteriorated.
Accounts receivable increased and the allowance for doubtful accounts rose substantially, a change that may affect future cash conversion.