Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated negative free cash flow again this quarter. Revenue declined compared to both the prior quarter and the same quarter last year, while operating cash outflow remained substantial.
- Operating cash flow was negative and exceeded negative free cash flow only slightly due to minimal capital expenditure. The free cash flow margin was deeply negative, reflecting that cash outflows far exceeded revenue.
- Revenue was lower than both the previous quarter and the same quarter last year. Operating cash flow improved modestly from the prior quarter but was worse than a year ago. Free cash flow followed a similar pattern, and the free cash flow margin weakened compared to both periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$18.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$4.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$4.5M
Cash generated by operations before capital spending.
CapEx
$2000
Capital spending and related asset purchases.
FCF margin
-1061.2%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $425000 | -$4.5M | $2000 | -$4.5M | -1061.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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.
Negative free cash flow margin
The free cash flow margin turned more negative compared to prior periods, indicating that cash generation from revenue remains insufficient to cover operating expenses and investments.
This margin weakness may strain liquidity if the trend persists.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative and exceeded negative free cash flow only slightly due to minimal capital expenditure. The free cash flow margin was deeply negative, reflecting that cash outflows far exceeded revenue.
Revenue was lower than both the previous quarter and the same quarter last year. Operating cash flow improved modestly from the prior quarter but was worse than a year ago. Free cash flow followed a similar pattern, and the free cash flow margin weakened compared to both periods.
Monitor the trend in revenue and operating cash flow as the company continues to burn cash.