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, while free cash flow turned more negative compared to the prior quarter. The free cash flow margin weakened sequentially but was stable relative to the year-ago quarter.
- Operating cash flow was negative and capital expenditure rose from the year-ago quarter, resulting in a free cash flow deficit that widened from both comparison periods. The free cash flow margin, though negative, was nearly unchanged from the year-ago quarter.
- Compared to the prior quarter, revenue was higher but operating cash flow weakened from a smaller deficit to a larger deficit, and free cash flow also worsened. Versus the same quarter last year, revenue was higher, operating cash flow was more negative, and free cash flow was more negative, while the free cash flow margin was similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$149.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$28.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$13.0M
Cash generated by operations before capital spending.
CapEx
$15.3M
Capital spending and related asset purchases.
FCF margin
-26.7%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $67.7M | -$25.2M | $21.0M | -$46.2M | -68.4% |
| 2023-12-31 | $60.0M | -$42.2M | $10.4M | -$52.6M | -87.7% |
| 2024-03-31 | $92.8M | -$2.6M | $19.2M | -$21.8M | -23.5% |
| 2024-06-30 | $106.3M | -$13.0M | $15.3M | -$28.3M | -26.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 68.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | $276.7M | 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 Increase
Capital expenditure rose compared to both the prior quarter and the year-ago quarter, contributing to the larger free cash flow deficit. The filing notes that investment in new products, technologies, and manufacturing facilities are primary liquidity needs.
Higher capital spending amplified the negative free cash flow despite revenue growth.
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 rose from the year-ago quarter, resulting in a free cash flow deficit that widened from both comparison periods. The free cash flow margin, though negative, was nearly unchanged from the year-ago quarter.
Compared to the prior quarter, revenue was higher but operating cash flow weakened from a smaller deficit to a larger deficit, and free cash flow also worsened. Versus the same quarter last year, revenue was higher, operating cash flow was more negative, and free cash flow was more negative, while the free cash flow margin was similar.
Monitor whether operating cash flow can narrow its deficit as revenue continues to grow.