Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the previous quarter but higher than a year earlier. Free cash flow remained negative, with the deficit narrowing compared to both prior periods.
- Revenue, operating cash flow, and capital expenditure combined to produce a negative free cash flow margin. The margin improved from the prior quarter and the same quarter last year, primarily because the operating cash outflow decreased relative to revenue.
- Free cash flow improved sequentially and year-over-year, driven by a lower operating cash outflow. Capital expenditure decreased from the prior quarter but increased from the year-ago period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$60.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$12.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$12.1M
Cash generated by operations before capital spending.
CapEx
$305000
Capital spending and related asset purchases.
FCF margin
-504.0%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $1.7M | -$15.5M | $15000 | -$15.5M | -907.1% |
| 2023-09-30 | $2.6M | -$16.9M | $62000 | -$16.9M | -660.7% |
| 2023-12-31 | $2.9M | -$14.7M | $442000 | -$15.2M | -522.4% |
| 2024-03-31 | $2.5M | -$12.1M | $305000 | -$12.4M | -504.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.4% | 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.
Operating Cash Flow Improvement
The reduction in operating cash outflow compared to both the prior quarter and the same quarter last year was the primary factor behind the narrower free cash flow deficit.
This lowered the rate of cash consumption during the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue, operating cash flow, and capital expenditure combined to produce a negative free cash flow margin. The margin improved from the prior quarter and the same quarter last year, primarily because the operating cash outflow decreased relative to revenue.
Free cash flow improved sequentially and year-over-year, driven by a lower operating cash outflow. Capital expenditure decreased from the prior quarter but increased from the year-ago period.
Monitor the company's cash and working capital levels, as the filing notes that additional operating losses and negative cash flows are expected.