Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter and the year-ago quarter, while operating cash flow improved slightly. Free cash flow worsened due to a significant increase in capital expenditure, resulting in a further weakened free cash flow margin.
- Revenue was lower than both the prior quarter and the year-ago quarter, while operating cash flow improved (less negative) compared to both periods. However, capital expenditure increased substantially, turning the improvement in operating cash flow into a more negative free cash flow and a weaker free cash flow margin.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow improved, but capital expenditure was higher, leading to lower free cash flow and a weakened margin. Versus the same quarter one year earlier, revenue was lower, operating cash flow improved, capital expenditure was higher, and free cash flow and margin were both lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$22.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$6.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$3.8M
Cash generated by operations before capital spending.
CapEx
$2.9M
Capital spending and related asset purchases.
FCF margin
-10709.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $62000 | -$3.8M | $2.9M | -$6.6M | -10709.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 13.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4622.6% | 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, more than offsetting the improvement in operating cash flow. This was the primary factor behind the more negative free cash flow and the weaker margin.
The higher capital expenditure drove free cash flow lower and further weakened the already negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter, while operating cash flow improved (less negative) compared to both periods. However, capital expenditure increased substantially, turning the improvement in operating cash flow into a more negative free cash flow and a weaker free cash flow margin.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow improved, but capital expenditure was higher, leading to lower free cash flow and a weakened margin. Versus the same quarter one year earlier, revenue was lower, operating cash flow improved, capital expenditure was higher, and free cash flow and margin were both lower.
Monitor the level of capital expenditure, as the filing indicates the company expects to continue investing in foundry facilities and research and development.