Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative, driven by operating cash flow that remained a substantial cash use, while capital expenditure was lower than the prior quarter. Revenue rose relative to both the previous quarter and the same quarter last year, yet free cash flow margin improved sequentially but worsened year-over-year.
- Operating cash flow was a large outflow and, together with capital expenditure, produced a negative free cash flow. Revenue growth was outpaced by the magnitude of cash outflows, reflected in a deeply negative free cash flow margin.
- Compared with the immediately preceding quarter, operating cash outflow, capital expenditure, and free cash outflow all decreased, and free cash flow margin improved. Versus the same quarter one year earlier, operating cash outflow and free cash outflow widened, capital expenditure increased, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$101.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$23.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$20.5M
Cash generated by operations before capital spending.
CapEx
$3.1M
Capital spending and related asset purchases.
FCF margin
-311.3%
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 | $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% |
| 2024-03-31 | $7.6M | -$20.5M | $3.1M | -$23.6M | -311.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 41.4% | 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.
Operating Cash Flow Burn
Operating cash flow was the dominant factor in free cash flow, far exceeding capital expenditure in absolute size. The sequential improvement in operating cash outflow was the strongest observable change.
Even with higher revenue, the operating cash flow deficit kept free cash flow deeply negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was a large outflow and, together with capital expenditure, produced a negative free cash flow. Revenue growth was outpaced by the magnitude of cash outflows, reflected in a deeply negative free cash flow margin.
Compared with the immediately preceding quarter, operating cash outflow, capital expenditure, and free cash outflow all decreased, and free cash flow margin improved. Versus the same quarter one year earlier, operating cash outflow and free cash outflow widened, capital expenditure increased, and free cash flow margin weakened.
Monitor the trajectory of operating cash flow, as it remains the largest use of cash relative to revenue.