Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by a shift from negative to positive operating cash flow and lower capital expenditure. Revenue declined from the prior quarter but remained above the year-ago level.
- Operating cash flow was positive, yielding a positive free cash flow after modest capital spending. The free cash flow margin improved sharply from negative in both the prior quarter and the year-ago quarter.
- Compared with the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow both improved from negative to positive. Versus the same quarter one year earlier, revenue was higher, capital expenditure was significantly lower, and free cash flow turned positive from a large negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$148.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$7.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$9.1M
Cash generated by operations before capital spending.
CapEx
$1.4M
Capital spending and related asset purchases.
FCF margin
10.1%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $79.9M | -$49.9M | $10.5M | -$60.4M | -75.6% |
| 2023-04-01 | $92.2M | -$42.2M | $5.3M | -$47.5M | -51.5% |
| 2023-07-01 | $102.1M | -$46.2M | $1.8M | -$48.0M | -47.0% |
| 2023-09-30 | $75.3M | $9.1M | $1.4M | $7.6M | 10.1% |
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 | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$919.0M | 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 turnaround
Operating cash flow shifted from a large negative in both the prior quarter and the year-ago quarter to a positive figure this quarter. This was the primary factor behind the positive free cash flow.
The improvement in operating cash flow directly enabled positive free cash flow and a positive margin, reversing the prior negative trends.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was positive, yielding a positive free cash flow after modest capital spending. The free cash flow margin improved sharply from negative in both the prior quarter and the year-ago quarter.
Compared with the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow both improved from negative to positive. Versus the same quarter one year earlier, revenue was higher, capital expenditure was significantly lower, and free cash flow turned positive from a large negative.
Monitor whether the positive operating cash flow can be sustained given the sequential revenue decline and the company's at-the-market equity program, under which no sales had been made as of quarter end.