Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's free cash flow was near breakeven in the current quarter, a significant improvement from the same quarter last year but a decline from the prior quarter. Revenue increased compared to the prior quarter, while operating cash flow turned slightly negative.
- Revenue was higher than the prior quarter, yet operating cash flow shifted from positive to negative, resulting in a free cash flow margin that weakened from positive to near zero. Compared to the same quarter last year, revenue was stable while operating cash flow improved substantially, leading to a much improved free cash flow margin.
- Compared to the preceding quarter, revenue increased but free cash flow declined from positive to negative. Compared to the same quarter one year earlier, revenue was similar while free cash flow improved sharply from a large negative to near breakeven.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$18.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$74000
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$74000
Cash generated by operations before capital spending.
CapEx
$0
Capital spending and related asset purchases.
FCF margin
-0.2%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $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% |
| 2023-12-31 | $40.6M | -$74000 | $0 | -$74000 | -0.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 0.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$124.8M | 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 shift
Operating cash flow moved from a positive level in the prior quarter to a small negative in the current quarter, while revenue grew. This shift is the most notable change in the cash conversion metrics.
The near-breakeven free cash flow margin highlights the sensitivity of cash generation to relatively small changes in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, yet operating cash flow shifted from positive to negative, resulting in a free cash flow margin that weakened from positive to near zero. Compared to the same quarter last year, revenue was stable while operating cash flow improved substantially, leading to a much improved free cash flow margin.
Compared to the preceding quarter, revenue increased but free cash flow declined from positive to negative. Compared to the same quarter one year earlier, revenue was similar while free cash flow improved sharply from a large negative to near breakeven.
Monitor whether operating cash flow can sustain near breakeven levels or return to positive territory in the coming quarters.