Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was deeply negative for the quarter, driven by operating cash outflow that widened from both the prior quarter and the same quarter last year. Revenue increased sequentially but remained below the year-ago level, while capital expenditure was lower across both comparisons.
- Revenue rose slightly from the prior quarter, yet operating cash flow turned more negative, resulting in a larger free cash flow deficit and a weaker free cash flow margin. The cash conversion from revenue to free cash flow worsened compared to both the preceding quarter and the same quarter one year earlier.
- Compared to the preceding quarter, revenue was higher but operating cash flow was more negative, and free cash flow was lower. Versus the same quarter one year ago, revenue was lower, operating cash flow was more negative, and free cash flow was weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$37.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$41.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$41.0M
Cash generated by operations before capital spending.
CapEx
$426000
Capital spending and related asset purchases.
FCF margin
-35.7%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-30 | $116.1M | -$41.0M | $426000 | -$41.4M | -35.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 12.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.2B | 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 outflow
The most observable driver of the free cash flow decline is the larger negative operating cash flow, which more than offset the sequential revenue gain and lower capital expenditure. The filing notes that the company uses significant cash to acquire bitcoins, but does not provide a direct attribution for the quarter's operating cash flow change.
The widening operating cash outflow was the primary factor behind the weakened free cash flow position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose slightly from the prior quarter, yet operating cash flow turned more negative, resulting in a larger free cash flow deficit and a weaker free cash flow margin. The cash conversion from revenue to free cash flow worsened compared to both the preceding quarter and the same quarter one year earlier.
Compared to the preceding quarter, revenue was higher but operating cash flow was more negative, and free cash flow was lower. Versus the same quarter one year ago, revenue was lower, operating cash flow was more negative, and free cash flow was weaker.
Monitor the trajectory of operating cash flow, as its outflow has widened sequentially and year-over-year despite relatively stable revenue.