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 but improved compared to the same quarter last year, though it weakened from the prior quarter. Revenue decreased from the prior quarter but increased from a year ago.
- Operating cash flow and free cash flow were both negative, with capital expenditure negligible. The free cash flow margin was negative, indicating cash generation was trailing revenue.
- Compared to the prior quarter, revenue was lower and free cash flow margin weakened. Compared to the same quarter last year, revenue was higher and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$42.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$12.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$12.8M
Cash generated by operations before capital spending.
CapEx
$2000
Capital spending and related asset purchases.
FCF margin
-33.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-06-30 | $38.5M | -$12.8M | $2000 | -$12.8M | -33.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 68.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$163.9M | 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 year over year
Operating cash flow, while still negative, was significantly less negative than the same quarter last year. This narrowing of the cash burn was the primary factor behind the improved free cash flow margin.
The free cash flow margin improved substantially from the year-ago period, reflecting a tighter cash conversion cycle.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow and free cash flow were both negative, with capital expenditure negligible. The free cash flow margin was negative, indicating cash generation was trailing revenue.
Compared to the prior quarter, revenue was lower and free cash flow margin weakened. Compared to the same quarter last year, revenue was higher and free cash flow margin improved.
Monitor the trend in revenue as it declined from the prior quarter.