Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose while operating cash flow and free cash flow deepened their negative positions sequentially, leading to a slightly weaker free cash flow margin. Compared with a year earlier, revenue was higher and free cash flow margin improved, though both cash flow metrics remained negative.
- Operating cash flow was deeply negative relative to revenue, and capital expenditure further widened the gap, resulting in a free cash flow margin that was also negative. The conversion from revenue to free cash flow remained strained as operating cash outflows exceeded inflows.
- Revenue increased versus both the prior quarter and the same quarter one year earlier. Operating cash flow and free cash flow were lower than the prior quarter but higher than the year-ago quarter, while free cash flow margin weakened sequentially but improved from a year ago.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$154.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$38.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$25.4M
Cash generated by operations before capital spending.
CapEx
$12.7M
Capital spending and related asset purchases.
FCF margin
-69.3%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $55.5M | -$38.3M | $12.8M | -$51.1M | -92.1% |
| 2022-09-30 | $63.1M | -$23.0M | $8.3M | -$31.3M | -49.7% |
| 2022-12-31 | $51.8M | -$18.9M | $15.0M | -$33.9M | -65.6% |
| 2023-03-31 | $54.9M | -$25.4M | $12.7M | -$38.1M | -69.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 23.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $104.7M | 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 pressure
Capital expenditure was higher than both the prior quarter and the year-ago quarter, contributing to a larger free cash outflow despite revenue growth. The filing indicates ongoing investment in new products, technologies, and facility expansion as primary liquidity uses.
Sustained capital spending may continue to weigh on free cash flow in the near term.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was deeply negative relative to revenue, and capital expenditure further widened the gap, resulting in a free cash flow margin that was also negative. The conversion from revenue to free cash flow remained strained as operating cash outflows exceeded inflows.
Revenue increased versus both the prior quarter and the same quarter one year earlier. Operating cash flow and free cash flow were lower than the prior quarter but higher than the year-ago quarter, while free cash flow margin weakened sequentially but improved from a year ago.
Monitor the trajectory of operating cash flow given its sequential decline even as revenue grew.