Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased while operating cash flow and free cash flow remained negative. Free cash flow margin improved due to higher revenue.
- Higher revenue was accompanied by a larger operating cash outflow, resulting in a more negative free cash flow. Capital expenditure remained minimal, so cash conversion was primarily driven by operating cash flow.
- Revenue was higher compared to both the prior quarter and the same quarter one year earlier. Operating cash flow and free cash flow were more negative, but free cash flow margin improved relative to both periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$57.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$16.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$16.9M
Cash generated by operations before capital spending.
CapEx
$62000
Capital spending and related asset purchases.
FCF margin
-660.7%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $2.4M | -$10.9M | $174000 | -$11.1M | -461.8% |
| 2023-03-31 | $1.6M | -$13.6M | $64000 | -$13.6M | -861.5% |
| 2023-06-30 | $1.7M | -$15.5M | $15000 | -$15.5M | -907.1% |
| 2023-09-30 | $2.6M | -$16.9M | $62000 | -$16.9M | -660.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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.
Revenue Growth Impact
Revenue increased significantly compared to both the prior quarter and the year-ago quarter, which helped improve the free cash flow margin despite higher operating cash outflows.
This positive trend supports margin improvement but requires continued revenue expansion to offset cash burn.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Higher revenue was accompanied by a larger operating cash outflow, resulting in a more negative free cash flow. Capital expenditure remained minimal, so cash conversion was primarily driven by operating cash flow.
Revenue was higher compared to both the prior quarter and the same quarter one year earlier. Operating cash flow and free cash flow were more negative, but free cash flow margin improved relative to both periods.
Monitor the trajectory of operating cash flow as revenue growth has not yet translated into positive cash generation.