Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's free cash flow remained deeply negative but improved from the preceding quarter. Revenue was nominal, and operating cash outflows continued to exceed capital spending.
- Revenue was minimal, while operating cash flow was significantly negative, resulting in a highly negative free cash flow margin. Capital expenditure was modest compared to the operating cash burn.
- Compared to the preceding quarter, operating cash flow and free cash flow improved, with less negative figures. However, compared to the same quarter one year earlier, both operating cash flow and free cash flow weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$141.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$29.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$29.6M
Cash generated by operations before capital spending.
CapEx
$202000
Capital spending and related asset purchases.
FCF margin
-102769.0%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $297000 | -$29.6M | $171000 | -$29.8M | -10017.8% |
| 2022-12-31 | $103000 | -$35.2M | $140000 | -$35.3M | -34292.2% |
| 2023-03-31 | $21000 | -$46.4M | $372000 | -$46.7M | -222557.1% |
| 2023-06-30 | $29000 | -$29.6M | $202000 | -$29.8M | -102769.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 60.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 696.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $5.3M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Reduced Operating Cash Burn
Operating cash flow in the current quarter was less negative than in the prior quarter, indicating a lower rate of cash consumption from operations.
This improvement helped narrow the free cash flow deficit, though overall cash generation from operations remains negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was minimal, while operating cash flow was significantly negative, resulting in a highly negative free cash flow margin. Capital expenditure was modest compared to the operating cash burn.
Compared to the preceding quarter, operating cash flow and free cash flow improved, with less negative figures. However, compared to the same quarter one year earlier, both operating cash flow and free cash flow weakened.
Monitor the trajectory of operating cash outflows, as the company continues to rely on external financing to fund its operations.