Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter last year, yet operating cash flow turned positive, resulting in a free cash flow margin that improved from negative to positive. The swing in cash flow was the most notable change, driven by a shift from negative operating cash flow to positive, with zero capital expenditure.
- Revenue was lower than the preceding quarter, but operating cash flow improved significantly from negative to positive, while capital expenditure was negligible. This combined to produce a positive free cash flow and a free cash flow margin that was higher than both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was lower and operating cash flow was higher, flipping from a negative to a positive figure. Versus the same quarter one year earlier, revenue was also lower, but operating cash flow and free cash flow both improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$28.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.6M
Cash generated by operations before capital spending.
CapEx
$0
Capital spending and related asset purchases.
FCF margin
19.4%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-09-30 | $34.0M | $6.6M | $0 | $6.6M | 19.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 228.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$161.6M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash Flow Turnaround
Operating cash flow moved from negative in both the prior quarter and the year-ago quarter to positive in the current quarter, a clear improvement. With no capital expenditure, free cash flow fully reflected this change.
The shift from negative to positive free cash flow strengthened the company's cash position for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter, but operating cash flow improved significantly from negative to positive, while capital expenditure was negligible. This combined to produce a positive free cash flow and a free cash flow margin that was higher than both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue was lower and operating cash flow was higher, flipping from a negative to a positive figure. Versus the same quarter one year earlier, revenue was also lower, but operating cash flow and free cash flow both improved from negative to positive.
Monitor whether operating cash flow can sustain its positive level despite a lower revenue base.