Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved versus both the prior quarter and the same quarter last year, while operating cash outflows narrowed sequentially. Free cash flow remained negative but the margin strengthened compared with both periods.
- Operating cash flow was lower than revenue, and capital expenditure added to the cash use, resulting in negative free cash flow. The free cash flow margin improved compared with the prior quarter and the year-ago quarter.
- Compared with the preceding quarter, revenue was higher and both operating cash outflow and capital expenditure were lower, leading to an improved free cash flow margin. Versus the same quarter one year earlier, revenue was higher and the free cash flow margin also strengthened, though the cash outflow was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$114.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$23.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$19.2M
Cash generated by operations before capital spending.
CapEx
$3.8M
Capital spending and related asset purchases.
FCF margin
-185.3%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-30 | $12.4M | -$19.2M | $3.8M | -$23.0M | -185.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 43.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 30.4% | 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.
Revenue improvement
Revenue increased compared with both the immediately preceding quarter and the same quarter one year earlier, contributing to a higher free cash flow margin.
Higher revenue was the strongest observable factor supporting the improvement in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than revenue, and capital expenditure added to the cash use, resulting in negative free cash flow. The free cash flow margin improved compared with the prior quarter and the year-ago quarter.
Compared with the preceding quarter, revenue was higher and both operating cash outflow and capital expenditure were lower, leading to an improved free cash flow margin. Versus the same quarter one year earlier, revenue was higher and the free cash flow margin also strengthened, though the cash outflow was slightly higher.
Monitor the trend in operating cash flow as it remains negative despite revenue growth.