Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned deeply negative driven by a significant increase in operating cash outflow, despite a modest capital expenditure. Revenue declined compared to both the prior quarter and the same quarter last year.
- Revenue was lower, while operating cash flow and free cash flow both worsened to negative levels, resulting in a substantially negative free cash flow margin.
- Compared to the prior quarter, revenue was lower and free cash flow deteriorated from near break-even to a loss. Versus the same quarter last year, revenue decreased and the free cash flow deficit widened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$20.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$14.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$14.4M
Cash generated by operations before capital spending.
CapEx
$38000
Capital spending and related asset purchases.
FCF margin
-43.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-03-31 | $33.1M | -$14.4M | $38000 | -$14.4M | -43.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 11.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$114.2M | 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 Outflow
The primary driver of the weak free cash flow was a large negative operating cash flow, which more than offset minimal capital spending.
The strong negative operating cash flow considerably reduced free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower, while operating cash flow and free cash flow both worsened to negative levels, resulting in a substantially negative free cash flow margin.
Compared to the prior quarter, revenue was lower and free cash flow deteriorated from near break-even to a loss. Versus the same quarter last year, revenue decreased and the free cash flow deficit widened.
Monitor operating cash flow trends, as the magnitude of the outflow drove the negative free cash flow.