Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow remained negative but improved sharply from the prior quarter, driven by a lower operating cash outflow. However, compared to the same quarter one year earlier, free cash flow turned from positive to negative.
- Revenue increased, while operating cash flow was negative, resulting in negative free cash flow and a negative margin. The gap between revenue and cash conversion widened compared to a year ago.
- Free cash flow and margin improved from the previous quarter, but weakened compared to the same quarter one year earlier, when the company generated positive free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$23.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.9M
Cash generated by operations before capital spending.
CapEx
$137000
Capital spending and related asset purchases.
FCF margin
-4.9%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-30 | $41.5M | -$1.9M | $137000 | -$2.0M | -4.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 13.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$130.2M | 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 flow improvement
The reduction in operating cash outflow compared to the prior quarter was the strongest driver of the free cash flow improvement. This narrowed the deficit, though cash flow remained negative.
The improvement in operating cash flow directly reduced the free cash flow deficit, bringing the margin closer to breakeven.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, while operating cash flow was negative, resulting in negative free cash flow and a negative margin. The gap between revenue and cash conversion widened compared to a year ago.
Free cash flow and margin improved from the previous quarter, but weakened compared to the same quarter one year earlier, when the company generated positive free cash flow.
The trajectory of operating cash flow as it approaches breakeven is a key metric to monitor.