Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year, but operating cash flow turned sharply negative, resulting in a much weaker free cash flow margin. The filing indicates that the company's liquidity and capital resources section analyzes its ability to generate cash and meet cash requirements.
- The conversion of revenue into free cash flow weakened substantially, as operating cash flow turned deeply negative while capital expenditure increased modestly, leading to a free cash flow margin that was significantly lower than the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin worsened. Versus the same quarter one year earlier, the same metrics deteriorated sharply, with free cash flow shifting from near break-even to a substantial negative position.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$38.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$15.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$14.8M
Cash generated by operations before capital spending.
CapEx
$180000
Capital spending and related asset purchases.
FCF margin
-34.2%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $43.8M | -$14.8M | $180000 | -$15.0M | -34.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 10.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$86.1M | 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 Deterioration
Operating cash flow moved from a small negative in the prior quarter and a near-zero negative a year ago to a large negative this quarter, far outpacing the increase in revenue. This shift is the strongest observable driver of the decline in free cash flow and margin.
The significant negative operating cash flow reduced free cash flow substantially, requiring the company to rely on other sources of liquidity as indicated in the filing's discussion of liquidity and capital resources.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion of revenue into free cash flow weakened substantially, as operating cash flow turned deeply negative while capital expenditure increased modestly, leading to a free cash flow margin that was significantly lower than the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin worsened. Versus the same quarter one year earlier, the same metrics deteriorated sharply, with free cash flow shifting from near break-even to a substantial negative position.
Monitor the trajectory of operating cash flow, which declined sharply this quarter and is the primary factor behind the negative free cash flow.