Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the previous quarter but was higher than a year ago. Operating cash flow remained negative and free cash flow worsened compared to both prior periods.
- Cash conversion was negative as operating cash flow was a net outflow, and capital expenditure added to the deficit, resulting in a negative free cash flow margin. Revenue was not sufficient to cover operating expenses and capital spending, leading to a cash outflow for each dollar of revenue.
- Compared to the previous quarter, revenue was lower and operating cash flow was more negative, leading to a larger free cash flow deficit and a weaker margin. Relative to the same quarter a year earlier, revenue was higher but operating cash flow turned from positive to negative, causing free cash flow to swing from positive to negative and margin to deteriorate.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$104.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$24.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$22.0M
Cash generated by operations before capital spending.
CapEx
$2.0M
Capital spending and related asset purchases.
FCF margin
-29.7%
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 | $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% |
| 2024-09-28 | $81.0M | -$22.0M | $2.0M | -$24.1M | -29.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 90.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.0B | 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 turned from positive a year ago to negative this quarter, and also worsened sequentially. This was the primary factor behind the larger free cash flow deficit.
The negative operating cash flow more than offset any revenue growth, leading to a significant free cash outflow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion was negative as operating cash flow was a net outflow, and capital expenditure added to the deficit, resulting in a negative free cash flow margin. Revenue was not sufficient to cover operating expenses and capital spending, leading to a cash outflow for each dollar of revenue.
Compared to the previous quarter, revenue was lower and operating cash flow was more negative, leading to a larger free cash flow deficit and a weaker margin. Relative to the same quarter a year earlier, revenue was higher but operating cash flow turned from positive to negative, causing free cash flow to swing from positive to negative and margin to deteriorate.
The company's at-the-market offering program and shelf registration statement, as described in the filing, are items to monitor for potential capital structure changes.