Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained deeply negative, driven by ongoing operating cash outflows and capital spending. Revenue increased from both the prior quarter and the year-ago period, but the absolute level remained very low.
- Revenue was modest, but operating cash flow was negative, indicating that cash conversion from sales was insufficient to cover operating expenses. Capital expenditure further reduced free cash flow, resulting in a highly negative free cash flow margin.
- Compared to the prior quarter, free cash flow was similar in magnitude, while revenue increased and the free cash flow margin improved. Versus the same quarter last year, free cash flow was more negative, but revenue was higher and the margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$18.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$4.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$4.3M
Cash generated by operations before capital spending.
CapEx
$379000
Capital spending and related asset purchases.
FCF margin
-3865.3%
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 | $65484 | -$4.8M | $6685 | -$4.8M | -7271.0% |
| 2022-09-30 | $37646 | -$4.3M | $156138 | -$4.4M | -11815.2% |
| 2022-12-31 | $1278 | -$4.0M | $703481 | -$4.7M | -368021.0% |
| 2023-03-31 | $121000 | -$4.3M | $379000 | -$4.7M | -3865.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 76.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 313.2% | 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 not yet profitable
Revenue increased from both the prior quarter and the year-ago period, which helped reduce the free cash flow margin deficit. However, operating cash flow remained negative, and the company's cash burn continued.
The higher revenue improved the free cash flow margin compared to prior periods, but the absolute level of free cash flow remained negative and required external funding.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was modest, but operating cash flow was negative, indicating that cash conversion from sales was insufficient to cover operating expenses. Capital expenditure further reduced free cash flow, resulting in a highly negative free cash flow margin.
Compared to the prior quarter, free cash flow was similar in magnitude, while revenue increased and the free cash flow margin improved. Versus the same quarter last year, free cash flow was more negative, but revenue was higher and the margin also improved.
Monitor the working capital deficit, which increased during the quarter, and the company's reliance on external financing to fund ongoing cash burn.