Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved from the prior quarter but remained lower than the same quarter last year. Free cash flow was negative, driven by negative operating cash flow and ongoing capital expenditure.
- Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin. Revenue was higher than the prior quarter, but cash conversion weakened compared to the same quarter last year when both operating cash flow and free cash flow were positive.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow improved slightly but remained negative, capital expenditure was lower, and free cash flow was less negative. Compared to the same quarter one year earlier, revenue was lower, operating cash flow and free cash flow turned from positive to negative, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$94.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$32.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.5M
Cash generated by operations before capital spending.
CapEx
$31.0M
Capital spending and related asset purchases.
FCF margin
-8.9%
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 |
|---|---|---|---|---|---|
| 2023-04-01 | $383.4M | $14.9M | $29.4M | -$14.5M | -3.8% |
| 2023-07-01 | $370.8M | $49.2M | $36.3M | $12.9M | 3.5% |
| 2023-09-30 | $317.6M | -$2.3M | $57.8M | -$60.1M | -18.9% |
| 2023-12-30 | $366.8M | -$1.5M | $31.0M | -$32.5M | -8.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 32.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.5% | 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.
Negative operating cash flow
Operating cash flow was negative for the quarter, a weakening from the positive level in the same quarter last year. This was the strongest observable driver of the negative free cash flow.
Negative operating cash flow directly contributed to negative free cash flow, despite lower capital expenditure compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin. Revenue was higher than the prior quarter, but cash conversion weakened compared to the same quarter last year when both operating cash flow and free cash flow were positive.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow improved slightly but remained negative, capital expenditure was lower, and free cash flow was less negative. Compared to the same quarter one year earlier, revenue was lower, operating cash flow and free cash flow turned from positive to negative, and free cash flow margin weakened.
Monitor whether operating cash flow can turn positive in future quarters, as it has been negative for two consecutive quarters.