Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive as operating cash flow improved from negative to positive, while capital expenditure was lower. Revenue was slightly lower than both the prior quarter and the same quarter one year earlier.
- Revenue was lower than the prior quarter, but operating cash flow swung from negative to positive, and capital expenditure decreased, resulting in positive free cash flow and a free cash flow margin that improved from negative to positive.
- Compared with the prior quarter, free cash flow improved from negative to positive, driven by a higher operating cash flow and lower capital expenditure. Compared with the same quarter one year earlier, free cash flow also improved from negative to positive, with operating cash flow higher and capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$837000
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2M
Cash generated by operations before capital spending.
CapEx
$347000
Capital spending and related asset purchases.
FCF margin
0.7%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $121.9M | $37.4M | $499000 | $36.9M | 30.3% |
| 2023-06-30 | $120.4M | -$18.5M | $639000 | -$19.1M | -15.9% |
| 2023-09-30 | $129.5M | -$7.4M | $1.5M | -$8.8M | -6.8% |
| 2023-12-31 | $124.5M | $1.2M | $347000 | $837000 | 0.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 0.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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 improvement
Operating cash flow moved from negative in both the prior quarter and the year-ago quarter to positive in the current quarter, which was the primary driver behind the positive free cash flow.
This improvement allowed free cash flow to turn positive despite a slightly lower revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, but operating cash flow swung from negative to positive, and capital expenditure decreased, resulting in positive free cash flow and a free cash flow margin that improved from negative to positive.
Compared with the prior quarter, free cash flow improved from negative to positive, driven by a higher operating cash flow and lower capital expenditure. Compared with the same quarter one year earlier, free cash flow also improved from negative to positive, with operating cash flow higher and capital expenditure lower.
Monitor the level of capital expenditure, as it decreased significantly from both the prior quarter and the year-ago quarter.