Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the quarter, operating cash outflows widened sharply compared to both the preceding period and the same period one year earlier, while free cash flow remained negative. Revenue rose from the prior quarter but stayed very low, and the free cash flow margin was deeply negative.
- Cash conversion was weak: operating cash flow was substantially negative relative to revenue, capital expenditure was minimal, and free cash flow was deeply negative, resulting in a strongly negative free cash flow margin.
- Compared to the prior quarter, revenue improved and free cash flow margin became less negative, but operating cash outflow and free cash outflow were both higher. Compared to the same quarter a year ago, revenue was lower, free cash flow margin was more negative, and both operating cash outflow and free cash outflow were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$162.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$51.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$50.8M
Cash generated by operations before capital spending.
CapEx
$192000
Capital spending and related asset purchases.
FCF margin
-31116.5%
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 | $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% |
| 2023-09-30 | $164000 | -$50.8M | $192000 | -$51.0M | -31116.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 113.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 117.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.2M | 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 Outflow Expansion
Operating cash outflow was substantially higher than both the prior quarter and the year-ago quarter, leading to a larger free cash flow deficit. The filing indicates that cash used in operations was a partial offset to the company's cash inflows from public offering and warrant exercises.
Continued operating cash outflows at this level will require ongoing external financing to maintain liquidity, as highlighted in the filing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion was weak: operating cash flow was substantially negative relative to revenue, capital expenditure was minimal, and free cash flow was deeply negative, resulting in a strongly negative free cash flow margin.
Compared to the prior quarter, revenue improved and free cash flow margin became less negative, but operating cash outflow and free cash outflow were both higher. Compared to the same quarter a year ago, revenue was lower, free cash flow margin was more negative, and both operating cash outflow and free cash outflow were higher.
Monitor the trajectory of operating cash flow, as its outflow increased significantly this quarter.