Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sequentially and year-over-year, driven by higher revenue and lower cash outflow from operations. The company still reported negative free cash flow, though the deficit narrowed significantly.
- Revenue rose compared to the prior quarter, while operating cash flow improved (less negative) relative to both the prior quarter and the year-ago period. Capital expenditure remained stable, and free cash flow margin strengthened from deeply negative levels.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow and free cash flow were less negative, and free cash flow margin improved. Versus the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and margin all showed improvement (less negative).
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$73.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$17.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$16.0M
Cash generated by operations before capital spending.
CapEx
$1.3M
Capital spending and related asset purchases.
FCF margin
-18.6%
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 | $75.3M | $9.1M | $1.4M | $7.6M | 10.1% |
| 2023-12-31 | $73.7M | -$28.5M | $2.0M | -$30.5M | -41.5% |
| 2024-03-30 | $75.6M | -$31.8M | $1.2M | -$33.0M | -43.7% |
| 2024-06-29 | $93.2M | -$16.0M | $1.3M | -$17.3M | -18.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 50.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$994.6M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth and operating cash flow improvement
Revenue increased from the prior quarter, and operating cash flow improved (less negative) compared to both the prior quarter and the year-ago period. This combination drove a narrower free cash flow deficit and a higher free cash flow margin.
The improvement in free cash flow margin indicates a step toward more efficient cash conversion, although the company remains cash flow negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose compared to the prior quarter, while operating cash flow improved (less negative) relative to both the prior quarter and the year-ago period. Capital expenditure remained stable, and free cash flow margin strengthened from deeply negative levels.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow and free cash flow were less negative, and free cash flow margin improved. Versus the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and margin all showed improvement (less negative).
Monitor the company's at-the-market equity offering program, which allows for the sale of common stock up to a specified aggregate amount, as disclosed in the liquidity and capital resources section of the filing.