Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter a year ago. Free cash flow remained negative but improved relative to the prior quarter, while the margin narrowed.
- Operating cash flow was negative, resulting in negative free cash flow after minimal capital expenditure. The free cash flow margin was deeply negative, indicating that cash conversion from revenue was significantly unfavorable. The filing notes that the increased operating cash usage was primarily related to higher prepaid expenses and inventories, partially offset by lower accounts payable.
- Compared to the prior quarter, operating cash flow and free cash flow were less negative, and revenue was higher. Versus the same quarter a year ago, revenue was higher, but operating cash flow and free cash flow were more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$16.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$4.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$4.2M
Cash generated by operations before capital spending.
CapEx
$8000
Capital spending and related asset purchases.
FCF margin
-361.7%
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 | $420000 | -$2.7M | $0 | -$2.7M | -648.8% |
| 2024-03-31 | $255000 | -$3.5M | $6000 | -$3.5M | -1390.6% |
| 2024-06-30 | $345000 | -$5.5M | $14000 | -$5.5M | -1599.7% |
| 2024-09-30 | $1.2M | -$4.2M | $8000 | -$4.2M | -361.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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 Growth
Revenue increased from the prior quarter and the year-ago period, which helped narrow the free cash flow margin. However, operating cash flow remained negative, and the company continued to consume cash.
Higher revenue reduced the cash burn rate relative to revenue, but did not achieve positive cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, resulting in negative free cash flow after minimal capital expenditure. The free cash flow margin was deeply negative, indicating that cash conversion from revenue was significantly unfavorable. The filing notes that the increased operating cash usage was primarily related to higher prepaid expenses and inventories, partially offset by lower accounts payable.
Compared to the prior quarter, operating cash flow and free cash flow were less negative, and revenue was higher. Versus the same quarter a year ago, revenue was higher, but operating cash flow and free cash flow were more negative.
Monitor the company's liquidity position given sustained negative operating cash flow, as the filing notes reliance on external financing and recent equity and debt issuances.