Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter but increased year-over-year. Free cash flow was negative and weakened compared to both the prior quarter and the same quarter last year.
- Operating cash flow was negative and capital expenditure remained elevated, resulting in a free cash flow margin that was lower than both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow both weakened. Compared to the same quarter last year, revenue was higher but operating cash flow and free cash flow were weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$153.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$52.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$42.2M
Cash generated by operations before capital spending.
CapEx
$10.4M
Capital spending and related asset purchases.
FCF margin
-87.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-31 | $60.0M | -$42.2M | $10.4M | -$52.6M | -87.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | $162.5M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Weakening cash conversion
The free cash flow margin declined sequentially and year-over-year, driven by a larger gap between revenue and operating cash flow.
Sustained negative free cash flow may pressure liquidity if operating cash flow does not improve.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative and capital expenditure remained elevated, resulting in a free cash flow margin that was lower than both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow both weakened. Compared to the same quarter last year, revenue was higher but operating cash flow and free cash flow were weaker.
Monitor the trajectory of operating cash flow, which turned more negative despite lower capital expenditure.