Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Current quarter free cash flow was negative, driven by a large capital expenditure and low revenue. The operating cash flow was slightly improved from the prior quarter but weakened compared to the same quarter last year.
- Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow remained negative, with a modest improvement sequentially. Capital expenditure increased substantially, leading to a more negative free cash flow and a very negative free cash flow margin.
- Compared to the prior quarter, revenue was lower, operating cash flow improved slightly, capital expenditure was much higher, and free cash flow worsened. Compared to the same quarter last year, revenue was higher, operating cash flow was slightly weaker, capital expenditure was much higher, and free cash flow was more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$20.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$6.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$4.4M
Cash generated by operations before capital spending.
CapEx
$1.6M
Capital spending and related asset purchases.
FCF margin
-12022.0%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $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% |
| 2023-09-30 | $50000 | -$4.4M | $1.6M | -$6.0M | -12022.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3168.0% | 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 rose sharply from both the prior quarter and the year-ago quarter, significantly outpacing cash generated from operations.
The increase in capital expenditure was the strongest driver of the larger free cash flow deficit.
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 year-ago quarter. Operating cash flow remained negative, with a modest improvement sequentially. Capital expenditure increased substantially, leading to a more negative free cash flow and a very negative free cash flow margin.
Compared to the prior quarter, revenue was lower, operating cash flow improved slightly, capital expenditure was much higher, and free cash flow worsened. Compared to the same quarter last year, revenue was higher, operating cash flow was slightly weaker, capital expenditure was much higher, and free cash flow was more negative.
Monitor the level of capital expenditure, as it was the primary factor behind the increased cash outflow.