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 last year, while operating cash flow and free cash flow turned more negative. The free cash flow margin, though still deeply negative, improved substantially due to the higher revenue base.
- Revenue remained modest, while operating cash flow was negative and capital expenditure was relatively small. This resulted in a negative free cash flow and a very negative free cash flow margin, indicating significant cash consumption relative to revenue.
- Compared to the immediately preceding quarter, revenue was higher, but operating cash flow and free cash flow were lower. Relative to the same quarter one year earlier, revenue was also higher, while operating cash flow and free cash flow were weaker; however, the free cash flow margin improved versus both periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$184.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$62.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$62.3M
Cash generated by operations before capital spending.
CapEx
$615000
Capital spending and related asset purchases.
FCF margin
-20680.3%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $29000 | -$29.6M | $202000 | -$29.8M | -102769.0% |
| 2023-09-30 | $164000 | -$50.8M | $192000 | -$51.0M | -31116.5% |
| 2023-12-31 | $23000 | -$40.9M | $64000 | -$41.0M | -178269.6% |
| 2024-03-31 | $304000 | -$62.3M | $615000 | -$62.9M | -20680.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 113.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 202.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $107.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash Burn Expansion
Operating cash outflows increased compared to both the prior quarter and the year-ago quarter, leading to a larger free cash flow deficit despite higher revenue.
The expanded cash burn underscores the reliance on the recent underwritten public offering to support liquidity.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained modest, while operating cash flow was negative and capital expenditure was relatively small. This resulted in a negative free cash flow and a very negative free cash flow margin, indicating significant cash consumption relative to revenue.
Compared to the immediately preceding quarter, revenue was higher, but operating cash flow and free cash flow were lower. Relative to the same quarter one year earlier, revenue was also higher, while operating cash flow and free cash flow were weaker; however, the free cash flow margin improved versus both periods.
Monitor the trajectory of operating cash outflows and the company's cash position, especially following the recent capital raising activity.