Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter, but operating cash flow and free cash flow improved versus both the prior quarter and the year-ago period. The free cash flow margin also improved, though it remained negative.
- Revenue for the current quarter was lower than the prior quarter, while operating cash outflow decreased more significantly, leading to a narrower free cash flow deficit. Capital expenditure remained minimal, so the conversion from revenue to free cash flow was primarily driven by changes in operating cash flow.
- Compared with the immediately preceding quarter, revenue was lower, while operating cash flow and free cash flow were higher (less negative). Versus the same quarter one year earlier, operating cash flow and free cash flow also improved, though revenue data for that period is not available.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$13.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.1M
Cash generated by operations before capital spending.
CapEx
$2313
Capital spending and related asset purchases.
FCF margin
-282.4%
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 | n/a | -$4.3M | $0 | -$4.3M | n/a |
| 2024-03-31 | $700433 | -$5.2M | $4578 | -$5.2M | -747.6% |
| 2024-06-30 | $704848 | -$3.2M | $17706 | -$3.2M | -456.4% |
| 2024-09-30 | $406859 | -$1.1M | $2313 | -$1.1M | -282.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 30.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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.
Operating cash flow improvement
The company reduced its cash used in operations compared to both the prior quarter and the same quarter last year, contributing to a narrower free cash flow deficit. This improvement occurred despite a decline in revenue.
This reduction in cash burn supports the company's liquidity position, but ongoing external funding remains necessary to sustain operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue for the current quarter was lower than the prior quarter, while operating cash outflow decreased more significantly, leading to a narrower free cash flow deficit. Capital expenditure remained minimal, so the conversion from revenue to free cash flow was primarily driven by changes in operating cash flow.
Compared with the immediately preceding quarter, revenue was lower, while operating cash flow and free cash flow were higher (less negative). Versus the same quarter one year earlier, operating cash flow and free cash flow also improved, though revenue data for that period is not available.
Monitor the company’s cash balance and its ability to secure additional financing, as the filing indicates the current cash position is insufficient to fund near-term operations without further capital.