Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter but was lower than the same quarter last year. Operating cash flow and free cash flow deficits narrowed substantially, resulting in a significantly improved free cash flow margin.
- The company converted a higher revenue into a much smaller operating cash outflow, and with minimal capital expenditure, free cash flow also showed a narrower deficit.
- Compared to the prior quarter, revenue was higher and the free cash flow margin improved markedly. Versus the same quarter a year earlier, revenue was lower but the free cash flow margin was also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$200.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$10.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$10.6M
Cash generated by operations before capital spending.
CapEx
$200000
Capital spending and related asset purchases.
FCF margin
-14.4%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $73.7M | -$59.0M | $0 | -$59.0M | -80.1% |
| 2022-12-31 | $71.3M | -$46.7M | $0 | -$46.7M | -65.5% |
| 2023-03-31 | $70.1M | -$83.7M | $0 | -$83.7M | -119.4% |
| 2023-06-30 | $74.8M | -$10.6M | $200000 | -$10.8M | -14.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 29.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $330.6M | 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
The operating cash flow deficit decreased sharply from both the prior quarter and the year-ago period, driving the improvement in free cash flow margin.
This reduced the company's cash consumption, though free cash flow remained negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a higher revenue into a much smaller operating cash outflow, and with minimal capital expenditure, free cash flow also showed a narrower deficit.
Compared to the prior quarter, revenue was higher and the free cash flow margin improved markedly. Versus the same quarter a year earlier, revenue was lower but the free cash flow margin was also improved.
Monitor whether the operating cash flow trend continues to narrow toward breakeven.