Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved compared to both the prior quarter and the same quarter last year, while operating cash flow, free cash flow, and free cash flow margin all showed less negative figures. The company's cash conversion remained negative, with operating cash outflows exceeding capital spending.
- Operating cash flow was negative, and after adding capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin. Revenue was higher, but cash generation did not turn positive.
- Compared to the immediately preceding quarter, revenue was higher and operating cash flow, free cash flow, and free cash flow margin all improved. Compared to the same quarter one year earlier, revenue was slightly higher and all cash flow metrics improved, showing a less negative position.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$15.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$7.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$7.1M
Cash generated by operations before capital spending.
CapEx
$129000
Capital spending and related asset purchases.
FCF margin
-18.1%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $39.8M | -$7.1M | $129000 | -$7.2M | -18.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 49.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$123.4M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue increase with narrower cash outflows
Revenue rose from both the prior quarter and the year-ago quarter, while operating cash outflows decreased. This combination led to an improvement in free cash flow and free cash flow margin.
The strongest observable driver was the reduction in operating cash outflows relative to the prior and year-ago quarters, which improved free cash flow despite ongoing negative cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and after adding capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin. Revenue was higher, but cash generation did not turn positive.
Compared to the immediately preceding quarter, revenue was higher and operating cash flow, free cash flow, and free cash flow margin all improved. Compared to the same quarter one year earlier, revenue was slightly higher and all cash flow metrics improved, showing a less negative position.
Monitor whether operating cash flow can turn positive as revenue continues to change, since cash conversion has remained negative across all periods.