Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sharply from the prior quarter and the year-ago quarter, while free cash flow improved relative to the prior quarter but weakened compared to the year-ago quarter. The free cash flow margin narrowed significantly from the prior quarter but remained deeply negative.
- Operating cash flow was negative and capital expenditure was elevated, resulting in negative free cash flow. The free cash flow margin was deeply negative, indicating that revenue did not cover cash outflows.
- Compared to the prior quarter, revenue was higher and free cash flow was less negative, while capital expenditure was lower. Compared to the year-ago quarter, revenue was higher but free cash flow was more negative, with capital expenditure significantly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$21.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$5.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$4.0M
Cash generated by operations before capital spending.
CapEx
$1.1M
Capital spending and related asset purchases.
FCF margin
-2782.0%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $183000 | -$4.0M | $1.1M | -$5.1M | -2782.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 588.5% | 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 vs. Cash Burn
Revenue increased notably from both the prior quarter and the year-ago quarter, yet operating cash flow remained negative and free cash flow was deeply negative. The company continues to rely on external financing to fund operations.
The company's ability to achieve positive free cash flow depends on sustaining revenue growth while controlling operating cash outflows and capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative and capital expenditure was elevated, resulting in negative free cash flow. The free cash flow margin was deeply negative, indicating that revenue did not cover cash outflows.
Compared to the prior quarter, revenue was higher and free cash flow was less negative, while capital expenditure was lower. Compared to the year-ago quarter, revenue was higher but free cash flow was more negative, with capital expenditure significantly higher.
Monitor the trajectory of capital expenditure, as it increased substantially year over year and remains a significant cash outflow.