Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow remained negative but improved, while capital expenditure was minimal. The free cash flow margin also improved from the prior quarter but remained deeply negative.
- Revenue increased compared to both the prior quarter and the same quarter a year earlier. Operating cash flow improved relative to both periods, though it remained negative. Capital expenditure was low. As a result, free cash flow improved but stayed negative, and the free cash flow margin strengthened from the prior quarter and the year-ago quarter.
- Compared to the preceding quarter, revenue was higher, operating cash flow was less negative, capital expenditure was higher, free cash flow was higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow was less negative, capital expenditure was higher, free cash flow was higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$16.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$3.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$3.0M
Cash generated by operations before capital spending.
CapEx
$34000
Capital spending and related asset purchases.
FCF margin
-391.3%
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 | $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% |
| 2023-09-30 | $769000 | -$3.0M | $34000 | -$3.0M | -391.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 49.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | 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.
Operating cash flow improvement
Operating cash flow in the current quarter was less negative than in both the prior quarter and the year-ago quarter. The filing context notes that a decrease in inventories contributed to the reduction in net cash used in operating activities for the nine-month period, partially offset by an increase in accounts receivable and prepaid expenses and a decrease in accrued liabilities.
The improvement in operating cash flow was the strongest positive factor in the quarter's cash conversion performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the same quarter a year earlier. Operating cash flow improved relative to both periods, though it remained negative. Capital expenditure was low. As a result, free cash flow improved but stayed negative, and the free cash flow margin strengthened from the prior quarter and the year-ago quarter.
Compared to the preceding quarter, revenue was higher, operating cash flow was less negative, capital expenditure was higher, free cash flow was higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow was less negative, capital expenditure was higher, free cash flow was higher, and the free cash flow margin improved.
Monitor the trajectory of operating cash flow given that it remains negative despite sequential improvement.