Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative this quarter as operating cash flow did not cover capital spending. Compared to the prior year, the free cash flow margin improved, though it weakened sequentially.
- Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow improved year-over-year but worsened sequentially, leading to a similar pattern in free cash flow.
- Compared to the prior quarter, free cash flow declined due to higher capital expenditure and lower revenue. Compared to the same quarter last year, free cash flow improved as operating cash flow was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$59.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$15.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$14.5M
Cash generated by operations before capital spending.
CapEx
$545000
Capital spending and related asset purchases.
FCF margin
-687.7%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $2.2M | -$14.5M | $545000 | -$15.0M | -687.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 25.0% | 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 Increase
Capital expenditure was higher than both the prior quarter and the same quarter last year.
The higher capital expenditure contributed to the sequential decline in free cash flow.
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 improved year-over-year but worsened sequentially, leading to a similar pattern in free cash flow.
Compared to the prior quarter, free cash flow declined due to higher capital expenditure and lower revenue. Compared to the same quarter last year, free cash flow improved as operating cash flow was less negative.
Monitor the trajectory of capital expenditure and its impact on free cash flow as the company continues to invest.