Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined relative to both the prior quarter and the same quarter a year earlier, while operating cash outflows remained near the prior quarter's level but increased compared to the year-ago period. Free cash flow margin worsened significantly, reflecting a weaker cash conversion profile.
- Revenue fell while operating cash flow stayed similar to the prior quarter, leading to a much more negative free cash flow margin. Capital expenditure was slightly higher than both comparison periods, but its absolute level was small relative to the cash flow deficit.
- Compared to the prior quarter, revenue was lower, operating cash flow was similar, and free cash flow margin weakened. Versus the same quarter a year earlier, revenue was lower, operating cash outflow was higher, and free cash flow margin also worsened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$18.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$4.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$4.6M
Cash generated by operations before capital spending.
CapEx
$14000
Capital spending and related asset purchases.
FCF margin
-987.6%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $946000 | -$4.3M | $20000 | -$4.3M | -453.8% |
| 2022-09-30 | $937000 | -$4.6M | $9000 | -$4.6M | -490.7% |
| 2022-12-31 | $916000 | -$4.6M | $7000 | -$4.6M | -504.9% |
| 2023-03-31 | $469000 | -$4.6M | $14000 | -$4.6M | -987.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 502.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | 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 Decline
Revenue dropped from the prior quarter and from the year-ago period, while operating cash outflows did not decrease proportionally. This revenue decline is the most observable factor behind the widening negative free cash flow margin.
The lower revenue base magnified the negative free cash flow margin, indicating reduced cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue fell while operating cash flow stayed similar to the prior quarter, leading to a much more negative free cash flow margin. Capital expenditure was slightly higher than both comparison periods, but its absolute level was small relative to the cash flow deficit.
Compared to the prior quarter, revenue was lower, operating cash flow was similar, and free cash flow margin weakened. Versus the same quarter a year earlier, revenue was lower, operating cash outflow was higher, and free cash flow margin also worsened.
Monitor inventory levels, as the filing noted a decrease in inventories contributed to the change in operating cash flow.