Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined sharply from both the prior quarter and the year-ago quarter, while operating cash outflow improved slightly versus the prior quarter. Free cash flow remained deeply negative, with the margin widening further due to higher capital expenditure.
- Cash conversion was negative, as operating cash flow was a net outflow and capital expenditure added to the cash burn, resulting in free cash flow that was more negative than operating cash flow alone. The free cash flow margin was deeply negative, reflecting that revenue was minimal relative to the cash consumed.
- Compared to the prior quarter, revenue was lower, operating cash outflow improved, but capital expenditure increased substantially, leading to a more negative free cash flow and a weakened margin. Versus the same quarter one year earlier, revenue was lower, operating cash outflow improved slightly, capital expenditure was higher, and free cash flow was more negative with a worsened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$21.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$5.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$3.8M
Cash generated by operations before capital spending.
CapEx
$1.6M
Capital spending and related asset purchases.
FCF margin
-20100.0%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $112000 | -$4.6M | $202000 | -$4.8M | -4308.0% |
| 2023-09-30 | $50000 | -$4.4M | $1.6M | -$6.0M | -12022.0% |
| 2023-12-31 | $75000 | -$5.0M | $53000 | -$5.0M | -6693.3% |
| 2024-03-31 | $27000 | -$3.8M | $1.6M | -$5.4M | -20100.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5848.1% | 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.
Capital Expenditure Increase
Capital expenditure rose sharply compared to both the prior quarter and the year-ago quarter, making free cash flow more negative despite a slight improvement in operating cash outflow. This was the strongest observable driver of the quarter's cash flow deterioration.
The higher capital expenditure directly increased the cash burn, widening the free cash flow deficit and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion was negative, as operating cash flow was a net outflow and capital expenditure added to the cash burn, resulting in free cash flow that was more negative than operating cash flow alone. The free cash flow margin was deeply negative, reflecting that revenue was minimal relative to the cash consumed.
Compared to the prior quarter, revenue was lower, operating cash outflow improved, but capital expenditure increased substantially, leading to a more negative free cash flow and a weakened margin. Versus the same quarter one year earlier, revenue was lower, operating cash outflow improved slightly, capital expenditure was higher, and free cash flow was more negative with a worsened margin.
Monitor the trajectory of capital expenditure, as it increased significantly from both comparison periods and directly widened the free cash flow deficit.