Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow remained negative with a margin that improved from both the prior quarter and the same quarter one year earlier. Operating cash flow was near break-even, while capital expenditure was lower than in both comparable periods.
- Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow turned from negative a year ago to slightly positive, though it fell sharply from the prior quarter. Capital expenditure decreased from both periods, resulting in a free cash flow deficit that narrowed relative to both comparisons. The free cash flow margin improved, reflecting a less negative cash conversion profile.
- Compared with the prior quarter, revenue and operating cash flow were lower, but capital expenditure decreased significantly, leading to a less negative free cash flow and an improved margin. Versus the same quarter one year earlier, revenue was higher, operating cash flow turned positive, capital expenditure was lower, and free cash flow and margin both improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$10.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$500000
Cash generated by operations before capital spending.
CapEx
$10.5M
Capital spending and related asset purchases.
FCF margin
-2.8%
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 | $299.4M | $25.3M | $14.6M | $10.7M | 3.6% |
| 2022-09-30 | $340.8M | $56.7M | $31.1M | $25.6M | 7.5% |
| 2022-12-31 | $369.7M | $50.7M | $64.4M | -$13.7M | -3.7% |
| 2023-03-31 | $358.1M | $500000 | $10.5M | -$10.0M | -2.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -42.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | 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.
Capital expenditure reduction
Capital expenditure was lower than both the prior quarter and the same quarter one year earlier. This reduction helped narrow the free cash flow deficit despite a decline in operating cash flow from the prior period.
The lower capital expenditure level was the primary observable factor supporting the improvement in free cash flow margin this quarter.
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 higher than the same quarter last year. Operating cash flow turned from negative a year ago to slightly positive, though it fell sharply from the prior quarter. Capital expenditure decreased from both periods, resulting in a free cash flow deficit that narrowed relative to both comparisons. The free cash flow margin improved, reflecting a less negative cash conversion profile.
Compared with the prior quarter, revenue and operating cash flow were lower, but capital expenditure decreased significantly, leading to a less negative free cash flow and an improved margin. Versus the same quarter one year earlier, revenue was higher, operating cash flow turned positive, capital expenditure was lower, and free cash flow and margin both improved.
Operating cash flow, which declined sharply from the prior quarter, is a key metric to monitor for future cash conversion trends.