Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow remained negative in the current quarter, with the free cash flow margin improving from the year-ago period but weakening sequentially. Revenue was higher than the prior year but slightly lower than the preceding quarter, and capital expenditure decreased from the prior quarter.
- Revenue was low relative to the negative operating cash flow and capital expenditure, resulting in a deeply negative free cash flow margin. The company's cash conversion remains weak, with operating cash outflow exceeding revenue.
- Compared to the preceding quarter, revenue was slightly lower, operating cash flow was more negative, and capital expenditure was lower, leading to a slightly more negative free cash flow. Compared to the year-ago quarter, revenue was higher, operating cash flow was less negative, capital expenditure was higher, and the free cash flow margin improved significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$18.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$4.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$4.6M
Cash generated by operations before capital spending.
CapEx
$202000
Capital spending and related asset purchases.
FCF margin
-4308.0%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-06-30 | $112000 | -$4.6M | $202000 | -$4.8M | -4308.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 180.4% | 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.
Free Cash Flow Margin Improvement
Revenue was higher than the year-ago quarter while free cash flow was similar, resulting in a less negative free cash flow margin.
This improvement reduced the cash burn rate relative to revenue, though the absolute outflow remained substantial.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was low relative to the negative operating cash flow and capital expenditure, resulting in a deeply negative free cash flow margin. The company's cash conversion remains weak, with operating cash outflow exceeding revenue.
Compared to the preceding quarter, revenue was slightly lower, operating cash flow was more negative, and capital expenditure was lower, leading to a slightly more negative free cash flow. Compared to the year-ago quarter, revenue was higher, operating cash flow was less negative, capital expenditure was higher, and the free cash flow margin improved significantly.
Monitor the trend of operating cash flow, which worsened sequentially despite a lower capital expenditure.