Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased while operating cash outflows widened, resulting in free cash flow remaining negative. The free cash flow margin improved due to higher revenue.
- Revenue rose, but operating cash flow was more negative, leading to a larger free cash flow deficit. Capital expenditure was stable sequentially and lower than the prior year.
- Compared to the prior quarter, revenue was higher while operating cash flow and free cash flow were more negative. Compared to the same quarter last year, revenue was higher, operating cash flow more negative, but capital expenditure was lower, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$62.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$17.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$16.1M
Cash generated by operations before capital spending.
CapEx
$1.2M
Capital spending and related asset purchases.
FCF margin
-313.9%
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 | $2.8M | -$12.9M | $1.4M | -$14.2M | -514.5% |
| 2022-12-31 | $3.8M | -$14.9M | $955000 | -$15.9M | -416.8% |
| 2023-03-31 | $4.3M | -$13.8M | $1.2M | -$15.0M | -350.1% |
| 2023-06-30 | $5.5M | -$16.1M | $1.2M | -$17.3M | -313.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 39.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 22.2% | 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 both the immediately preceding quarter and the same quarter one year earlier. This growth contributed to an improved free cash flow margin, despite the widening cash outflows.
Revenue growth partially offset the widening cash outflows, but free cash flow remained negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose, but operating cash flow was more negative, leading to a larger free cash flow deficit. Capital expenditure was stable sequentially and lower than the prior year.
Compared to the prior quarter, revenue was higher while operating cash flow and free cash flow were more negative. Compared to the same quarter last year, revenue was higher, operating cash flow more negative, but capital expenditure was lower, and free cash flow margin improved.
Monitor the trajectory of operating cash outflows relative to revenue growth.