Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company reported negative free cash flow for the quarter, driven by negative operating cash flow and minimal capital expenditure. Revenue declined compared to the prior quarter and the same quarter last year, while free cash flow margin turned negative from a positive margin in the preceding quarter.
- Operating cash flow was negative, resulting in free cash flow that was also negative after accounting for small capital spending. The free cash flow margin was negative, reflecting the cash outflow relative to revenue.
- Compared to the immediately preceding quarter, operating cash flow swung from positive to negative and free cash flow shifted from a positive to a negative figure, while revenue was slightly lower. Relative to the same quarter one year earlier, operating cash flow was less negative, but free cash flow was more negative, and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$5.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$24.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$23.3M
Cash generated by operations before capital spending.
CapEx
$723000
Capital spending and related asset purchases.
FCF margin
-21.6%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $129.5M | -$7.4M | $1.5M | -$8.8M | -6.8% |
| 2023-12-31 | $124.5M | $1.2M | $347000 | $837000 | 0.7% |
| 2024-03-31 | $115.2M | $28.6M | $1.5M | $27.0M | 23.5% |
| 2024-06-30 | $111.4M | -$23.3M | $723000 | -$24.1M | -21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 23.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.8B | 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 reversal
Operating cash flow turned negative this quarter after being positive in the prior quarter, which was the primary factor behind the negative free cash flow. Revenue was also lower than both comparison periods.
The negative operating cash flow constrained free cash flow and resulted in a negative margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, resulting in free cash flow that was also negative after accounting for small capital spending. The free cash flow margin was negative, reflecting the cash outflow relative to revenue.
Compared to the immediately preceding quarter, operating cash flow swung from positive to negative and free cash flow shifted from a positive to a negative figure, while revenue was slightly lower. Relative to the same quarter one year earlier, operating cash flow was less negative, but free cash flow was more negative, and the free cash flow margin weakened.
Based on the filing, the company's principal sources of liquidity are cash and the collection of accounts receivable, making the trend in receivables a key metric to monitor.