Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained deeply negative with a margin that weakened from the prior quarter but improved relative to the same quarter one year earlier. Cash conversion was pressured mainly by a higher operating cash outflow despite steady capital spending.
- Revenue was stable compared to the prior quarter, yet operating cash flow turned more negative, causing free cash flow to weaken. Capital expenditure remained at a similar level, so the cash conversion decline was driven entirely by the larger operating cash outflow.
- Compared to the prior quarter, revenue was slightly lower while operating cash flow and free cash flow both worsened. Versus the same quarter one year earlier, revenue was higher and free cash flow margin improved, though free cash flow in absolute terms was slightly weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$123.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$43.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$39.4M
Cash generated by operations before capital spending.
CapEx
$3.6M
Capital spending and related asset purchases.
FCF margin
-367.4%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $11.7M | -$39.4M | $3.6M | -$43.0M | -367.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 21.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 30.7% | 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 Expansion
Operating cash flow declined sequentially from the prior quarter, while revenue did not materially change. This divergence was the strongest observable factor driving the lower free cash flow.
If the operating cash outflow trend persists, free cash flow could remain under pressure even with stable revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, yet operating cash flow turned more negative, causing free cash flow to weaken. Capital expenditure remained at a similar level, so the cash conversion decline was driven entirely by the larger operating cash outflow.
Compared to the prior quarter, revenue was slightly lower while operating cash flow and free cash flow both worsened. Versus the same quarter one year earlier, revenue was higher and free cash flow margin improved, though free cash flow in absolute terms was slightly weaker.
Monitor whether operating cash outflows continue to expand relative to revenue, as this was the sole factor behind the sequential weakening in free cash flow.