Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased compared to the prior quarter and increased compared to the same quarter last year. Operating cash flow and free cash flow remained negative, with a weaker free cash flow margin relative to the prior quarter but an improvement from the year-ago quarter.
- Revenue was substantially lower than operating cash outflows, resulting in a deeply negative free cash flow margin. Capital expenditure was minimal, so the cash conversion pattern is primarily driven by operating cash flow rather than investing activities.
- Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow were similar, causing the free cash flow margin to weaken. Versus the same quarter one year ago, revenue was higher, and although operating cash flow and free cash flow were more negative, the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$17.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$4.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$4.3M
Cash generated by operations before capital spending.
CapEx
$7000
Capital spending and related asset purchases.
FCF margin
-472.0%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $902000 | -$4.3M | $7000 | -$4.3M | -472.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | 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 Burn
The company used cash from operations at a rate substantially above revenue, consistent across the current and prior quarters. Cash from financing activities totaled a significant amount for the full fiscal year, indicating reliance on external sources to fund operations.
Sustained negative free cash flow persists without a clear sign of narrowing from operating improvements alone.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was substantially lower than operating cash outflows, resulting in a deeply negative free cash flow margin. Capital expenditure was minimal, so the cash conversion pattern is primarily driven by operating cash flow rather than investing activities.
Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow were similar, causing the free cash flow margin to weaken. Versus the same quarter one year ago, revenue was higher, and although operating cash flow and free cash flow were more negative, the free cash flow margin improved.
Monitor the trajectory of operating cash flow relative to revenue, as the gap widened sequentially and remains large versus the year-ago period.