Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was unchanged from the prior quarter but improved compared to the same period a year earlier. Free cash flow became more negative both sequentially and year-over-year, driven by a larger operating cash outflow and a significant increase in capital spending.
- Operating cash flow was deeply negative and worsened relative to both the prior quarter and the year-ago quarter. Combined with a rise in capital expenditure, free cash flow margin remained extremely negative and weakened further.
- Compared to the immediately preceding quarter, revenue was stable but operating cash flow turned more negative, capital expenditure rose, and free cash flow deepened. Versus the same quarter one year earlier, revenue was higher, yet the cash outflows grew substantially, resulting in a weakened free cash flow position.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$92.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$33.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$26.6M
Cash generated by operations before capital spending.
CapEx
$7.2M
Capital spending and related asset purchases.
FCF margin
-553.4%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $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% |
| 2023-12-31 | $6.1M | -$26.6M | $7.2M | -$33.8M | -553.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 80.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 117.2% | 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.
Operating Cash Outflow Increase
Operating cash flow was more negative in the current quarter relative to both the prior quarter and the year-ago quarter, outpacing the change in revenue. Capital expenditure also rose, compounding the free cash flow decline.
The combination of higher operating cash outflows and elevated capital expenditure drove free cash flow further into negative territory.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was deeply negative and worsened relative to both the prior quarter and the year-ago quarter. Combined with a rise in capital expenditure, free cash flow margin remained extremely negative and weakened further.
Compared to the immediately preceding quarter, revenue was stable but operating cash flow turned more negative, capital expenditure rose, and free cash flow deepened. Versus the same quarter one year earlier, revenue was higher, yet the cash outflows grew substantially, resulting in a weakened free cash flow position.
Monitor the trajectory of operating cash flow, as its worsening outflows are the primary factor behind the declining free cash flow.