Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter a year ago. Operating cash flow turned positive, leading to positive free cash flow and a positive margin, though both were lower than the year-ago period.
- Operating cash flow and free cash flow both turned positive, supported by a modest capital expenditure, yielding a positive free cash flow margin. This contrasts with the prior quarter's negative margin, though the margin is lower than the year-ago quarter.
- Compared to the immediately preceding quarter, the company improved from negative to positive operating cash flow and free cash flow, with margin shifting from negative to positive. Compared to the same quarter one year earlier, revenue was slightly higher but operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$5.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$36.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$37.4M
Cash generated by operations before capital spending.
CapEx
$499000
Capital spending and related asset purchases.
FCF margin
30.3%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $122.1M | -$20.8M | $878000 | -$21.7M | -17.8% |
| 2022-09-30 | $125.4M | -$1.5M | $332000 | -$1.8M | -1.4% |
| 2022-12-31 | $132.6M | -$18.2M | $635000 | -$18.8M | -14.2% |
| 2023-03-31 | $121.9M | $37.4M | $499000 | $36.9M | 30.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 8.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | 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 flow recovery
Operating cash flow swung from a negative outflow in the prior quarter to a positive inflow in the current quarter, which was the key factor enabling positive free cash flow.
This turnaround directly shifted the free cash flow margin from negative to positive 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 and free cash flow both turned positive, supported by a modest capital expenditure, yielding a positive free cash flow margin. This contrasts with the prior quarter's negative margin, though the margin is lower than the year-ago quarter.
Compared to the immediately preceding quarter, the company improved from negative to positive operating cash flow and free cash flow, with margin shifting from negative to positive. Compared to the same quarter one year earlier, revenue was slightly higher but operating cash flow, free cash flow, and margin were all lower.
The filing notes that ongoing collection of accounts receivable is a principal source of liquidity.