Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year, yet free cash flow turned more negative due to a larger operating cash outflow and higher capital expenditure. The free cash flow margin weakened significantly compared to both periods.
- Revenue rose while operating cash flow turned more negative, indicating a lower cash conversion rate. The combination of negative operating cash flow and elevated capital expenditure resulted in a free cash flow margin that was deeply negative and worse than both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue was higher but operating cash flow was lower, capital expenditure was higher, and free cash flow was more negative. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow was lower, capital expenditure was higher, and free cash flow was more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$134.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$46.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$25.2M
Cash generated by operations before capital spending.
CapEx
$21.0M
Capital spending and related asset purchases.
FCF margin
-68.4%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $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% |
| 2023-09-30 | $67.7M | -$25.2M | $21.0M | -$46.2M | -68.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 31.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $35.8M | 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 Deterioration
Operating cash flow was lower than both the prior quarter and the year-ago quarter, even as revenue increased. This was the strongest observable driver of the more negative free cash flow.
The weaker operating cash flow, combined with higher capital expenditure, drove free cash flow to a more negative level and a lower margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow turned more negative, indicating a lower cash conversion rate. The combination of negative operating cash flow and elevated capital expenditure resulted in a free cash flow margin that was deeply negative and worse than both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue was higher but operating cash flow was lower, capital expenditure was higher, and free cash flow was more negative. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow was lower, capital expenditure was higher, and free cash flow was more negative.
Monitor the trajectory of operating cash flow, as it turned more negative despite higher revenue, which was the primary factor behind the weakened free cash flow.