Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, Incannex Healthcare reported no revenue and negative free cash flow, as operating cash outflow improved compared to the prior quarter. The company continues to rely on external funding to support its operations and drug development activities.
- With no revenue, free cash flow was entirely driven by the operating cash outflow, which remained negative. The free cash flow margin is not meaningful due to the absence of revenue.
- Compared to the immediately preceding quarter, operating cash outflow improved, and free cash flow also improved. Compared to the same quarter one year earlier, operating cash outflow and free cash flow both improved, though the prior year period had minimal capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
-$3.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$3.2M
Cash generated by operations before capital spending.
CapEx
$0
Capital spending and related asset purchases.
FCF margin
n/a
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 |
|---|---|---|---|---|---|
| 2024-06-30 | n/a | -$3.6M | $3000 | -$3.6M | n/a |
| 2024-09-30 | $74000 | -$2.2M | n/a | n/a | n/a |
| 2024-12-31 | $12000 | -$5.6M | n/a | n/a | n/a |
| 2025-03-31 | $0 | -$3.2M | $0 | -$3.2M | n/a |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 79.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | n/a | 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.
Reduced Operating Cash Burn
The primary driver was a notable reduction in cash used in operations, which decreased from the prior quarter and from the same quarter a year ago. This improvement occurred even as revenue declined to zero.
The lower operating cash outflow narrowed the free cash flow deficit, providing a relative cushion despite the absence of revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With no revenue, free cash flow was entirely driven by the operating cash outflow, which remained negative. The free cash flow margin is not meaningful due to the absence of revenue.
Compared to the immediately preceding quarter, operating cash outflow improved, and free cash flow also improved. Compared to the same quarter one year earlier, operating cash outflow and free cash flow both improved, though the prior year period had minimal capital expenditure.
Monitor the company's cash runway and its ability to secure additional financing, as operating losses and negative cash flows are expected to persist.