Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased while operating cash outflow narrowed, leading to a smaller free cash flow deficit and a sharply improved free cash flow margin. The sequential improvement was driven by stronger cash generation from operations, though capital expenditure remained elevated.
- Operating cash flow improved relative to revenue, as the operating cash deficit as a share of revenue narrowed. Despite still-negative free cash flow, the conversion from revenue to free cash flow strengthened substantially compared with both the prior quarter and the year-ago quarter.
- Compared with the immediately preceding quarter, revenue was higher and the free cash flow deficit was lower, with free cash flow margin improving from negative sixty-nine percent to negative twenty-seven percent. Versus the same quarter one year earlier, revenue was higher and the free cash flow deficit narrowed by over half, with margin improving from negative ninety-two percent.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$120.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$16.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$6.1M
Cash generated by operations before capital spending.
CapEx
$10.6M
Capital spending and related asset purchases.
FCF margin
-26.8%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $62.0M | -$6.1M | $10.6M | -$16.6M | -26.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 36.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $92.8M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Improvement
Operating cash flow improved sequentially by a large margin and was also significantly better than the year-ago period, despite revenue only growing modestly from the prior year. This was the strongest observable driver of the reduced free cash flow deficit.
The narrower operating cash outflow directly reduced the need for external funding and improved the company's cash conversion from revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved relative to revenue, as the operating cash deficit as a share of revenue narrowed. Despite still-negative free cash flow, the conversion from revenue to free cash flow strengthened substantially compared with both the prior quarter and the year-ago quarter.
Compared with the immediately preceding quarter, revenue was higher and the free cash flow deficit was lower, with free cash flow margin improving from negative sixty-nine percent to negative twenty-seven percent. Versus the same quarter one year earlier, revenue was higher and the free cash flow deficit narrowed by over half, with margin improving from negative ninety-two percent.
Capital expenditure remained elevated in absolute terms; monitor whether the stepped-up investment level moderates, which could accelerate free cash flow improvement.