Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow remained negative as operating cash outflows exceeded revenue. While the free cash flow deficit was unchanged from the prior quarter, it narrowed compared to the same quarter last year.
- Revenue was low and operating cash flow was negative, resulting in a negative free cash flow after capital expenditure. The free cash flow margin was very negative, reflecting that operating cash outflows far exceeded revenue.
- Compared to the prior quarter, revenue declined, operating cash flow was more negative, and capital expenditure was lower, leaving free cash flow unchanged. Compared to the same quarter last year, revenue increased, operating cash flow was slightly more negative, capital expenditure was lower, and the free cash flow deficit improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$20.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$5.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$4.6M
Cash generated by operations before capital spending.
CapEx
$514000
Capital spending and related asset purchases.
FCF margin
-5040.6%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-30 | $101000 | -$4.6M | $514000 | -$5.1M | -5040.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 89.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 508.9% | 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 and reduced capex
The year-over-year improvement in free cash flow was primarily driven by higher revenue and lower capital expenditure. However, operating cash flow remained negative and was slightly worse than the prior quarter, indicating ongoing operational cash burn.
The improvement in the free cash flow deficit was mainly due to top-line growth and disciplined spending on fixed assets, but the overall cash position remains strained.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was low and operating cash flow was negative, resulting in a negative free cash flow after capital expenditure. The free cash flow margin was very negative, reflecting that operating cash outflows far exceeded revenue.
Compared to the prior quarter, revenue declined, operating cash flow was more negative, and capital expenditure was lower, leaving free cash flow unchanged. Compared to the same quarter last year, revenue increased, operating cash flow was slightly more negative, capital expenditure was lower, and the free cash flow deficit improved.
Monitor the company's cash balance and its ability to secure additional funding given the continued negative free cash flow and limited cash reserves.