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 a year ago, while operating cash flow and free cash flow were more negative. The free cash flow margin improved (less negative) from the preceding periods.
- Revenue was higher, but the operating cash outflow also increased, resulting in a larger negative free cash flow. Capital expenditure rose, contributing to the widening deficit in free cash flow.
- Sequentially, revenue and capital expenditure were higher, while operating cash flow and free cash flow became more negative. The free cash flow margin improved (less negative). Year over year, the same directional patterns held: revenue higher, cash flows more negative, and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$117.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$34.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$26.6M
Cash generated by operations before capital spending.
CapEx
$7.5M
Capital spending and related asset purchases.
FCF margin
-299.3%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $11.4M | -$26.6M | $7.5M | -$34.1M | -299.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 90.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 65.8% | 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 was higher than both the prior quarter and the same quarter one year earlier. This is the strongest observable positive change among the reported metrics.
The higher revenue supported an improved free cash flow margin, even though absolute free cash flow remained negative and more negative than prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, but the operating cash outflow also increased, resulting in a larger negative free cash flow. Capital expenditure rose, contributing to the widening deficit in free cash flow.
Sequentially, revenue and capital expenditure were higher, while operating cash flow and free cash flow became more negative. The free cash flow margin improved (less negative). Year over year, the same directional patterns held: revenue higher, cash flows more negative, and margin improved.
Monitor capital expenditure trends, as they increased notably from both the prior quarter and the year-ago period.