Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased compared to the same quarter last year but increased from the prior quarter. Free cash flow turned positive, a significant improvement from both the prior quarter and the year-ago period.
- Operating cash flow turned positive, exceeding revenue, and capital expenditure was lower than operating cash flow, resulting in a positive free cash flow margin. This marks a sharp reversal from the prior quarter's deeply negative cash conversion.
- Compared to the prior quarter, free cash flow improved from a large negative to a positive figure, driven by a swing in operating cash flow. Versus the same quarter last year, free cash flow also improved from negative to positive, despite lower revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$44.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0M
Cash generated by operations before capital spending.
CapEx
$950000
Capital spending and related asset purchases.
FCF margin
46.2%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $2.5M | -$12.1M | $305000 | -$12.4M | -504.0% |
| 2024-06-30 | $2.2M | -$14.5M | $545000 | -$15.0M | -687.7% |
| 2024-09-30 | $1.9M | -$18.1M | $306000 | -$18.4M | -982.8% |
| 2024-12-31 | $2.3M | $2.0M | $950000 | $1.1M | 46.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 41.1% | 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 Turnaround
Operating cash flow shifted from negative in both comparison periods to positive in the current quarter, which is the primary factor behind the positive free cash flow.
This change was the key factor in achieving a positive free cash flow margin, contrasting with the negative margins of the prior and year-ago quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned positive, exceeding revenue, and capital expenditure was lower than operating cash flow, resulting in a positive free cash flow margin. This marks a sharp reversal from the prior quarter's deeply negative cash conversion.
Compared to the prior quarter, free cash flow improved from a large negative to a positive figure, driven by a swing in operating cash flow. Versus the same quarter last year, free cash flow also improved from negative to positive, despite lower revenue.
Monitor whether the company can maintain positive operating cash flow given the historical pattern of net losses and negative cash flows from operations noted in the filing.