Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter one year earlier. However, operating cash flow and capital expenditure were higher, resulting in a larger free cash flow deficit and a free cash flow margin that weakened sequentially but improved year-over-year.
- Cash conversion remained negative as operating cash flow was an outflow while revenue grew. The gap between revenue and operating cash flow widened, and capital expenditure increased, further pressuring free cash flow.
- Compared to the prior quarter, revenue was higher but operating cash flow, capital expenditure, and free cash flow were all lower (more negative). Compared to the same quarter one year earlier, revenue was higher, operating cash flow and capital expenditure were higher, free cash flow was lower, but free cash flow margin improved due to the larger revenue base.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$74.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$26.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$22.3M
Cash generated by operations before capital spending.
CapEx
$4.1M
Capital spending and related asset purchases.
FCF margin
-430.5%
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 | $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% |
| 2023-09-30 | $6.1M | -$22.3M | $4.1M | -$26.4M | -430.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 58.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 67.4% | 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.
Capital Expenditure Increase
Capital expenditure was higher in the current quarter compared to both the prior quarter and the same quarter last year, contributing to a larger free cash outflow.
The elevated capital spending, combined with negative operating cash flow, intensified the quarter's cash burn.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion remained negative as operating cash flow was an outflow while revenue grew. The gap between revenue and operating cash flow widened, and capital expenditure increased, further pressuring free cash flow.
Compared to the prior quarter, revenue was higher but operating cash flow, capital expenditure, and free cash flow were all lower (more negative). Compared to the same quarter one year earlier, revenue was higher, operating cash flow and capital expenditure were higher, free cash flow was lower, but free cash flow margin improved due to the larger revenue base.
Monitor the company's cash, cash equivalents, and investment balance relative to the increasing rate of cash consumption, as significant negative free cash flow continues.