Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter and the same quarter a year ago, while operating cash flow improved from a larger negative to a smaller negative. Free cash flow remained negative but the margin strengthened significantly compared to both prior periods.
- Revenue was higher, operating cash flow was less negative, and capital expenditure was lower than the prior quarter. These changes led to a smaller free cash flow deficit and a higher free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow improved, and free cash flow margin strengthened. Versus the same quarter one year earlier, revenue was substantially higher, operating cash flow shifted from positive to negative, but free cash flow margin improved markedly due to a much smaller capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$853199
Trailing twelve-month free cash flow.
Quarter free cash flow
-$61292
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$42713
Cash generated by operations before capital spending.
CapEx
$18579
Capital spending and related asset purchases.
FCF margin
-5.0%
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 |
|---|---|---|---|---|---|
| 2023-08-31 | $245346 | -$366690 | $118812 | -$485502 | -197.9% |
| 2023-11-30 | $511308 | -$45290 | $79728 | -$125018 | -24.5% |
| 2024-02-29 | $891613 | -$159014 | $22373 | -$181387 | -20.3% |
| 2024-05-31 | $1.2M | -$42713 | $18579 | -$61292 | -5.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 9.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue and Margin Improvement
Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow improved from a larger negative to a smaller negative, and free cash flow margin showed a significant strengthening even though free cash flow remained negative.
The quarter's cash conversion metrics indicate a strengthening trend in operating efficiency, though free cash flow generation remains negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, operating cash flow was less negative, and capital expenditure was lower than the prior quarter. These changes led to a smaller free cash flow deficit and a higher free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow improved, and free cash flow margin strengthened. Versus the same quarter one year earlier, revenue was substantially higher, operating cash flow shifted from positive to negative, but free cash flow margin improved markedly due to a much smaller capital expenditure.
Monitor the completion of the transformer resale transactions and related customer deposit movements, as noted in the filing, which may affect future cash flows.