Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow turned positive, resulting in positive free cash flow and a positive margin, compared to negative figures in both comparison periods.
- Revenue increased while operating cash flow improved from negative to positive, and with no capital expenditure, free cash flow equaled operating cash flow. The free cash flow margin turned positive.
- Compared to the immediately preceding quarter, revenue was higher and operating cash flow improved from negative to positive, leading to a positive free cash flow margin. Compared to the same quarter one year earlier, all metrics showed significant improvement, with operating cash flow and free cash flow moving from deeply negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$126.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$14.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$14.6M
Cash generated by operations before capital spending.
CapEx
$0
Capital spending and related asset purchases.
FCF margin
12.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-09-30 | $115.3M | $14.6M | $0 | $14.6M | 12.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -31.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $337.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth
Revenue was higher than the prior quarter and the year-ago quarter, supporting a shift to positive operating cash flow.
This revenue increase was the primary factor in turning free cash flow positive.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow improved from negative to positive, and with no capital expenditure, free cash flow equaled operating cash flow. The free cash flow margin turned positive.
Compared to the immediately preceding quarter, revenue was higher and operating cash flow improved from negative to positive, leading to a positive free cash flow margin. Compared to the same quarter one year earlier, all metrics showed significant improvement, with operating cash flow and free cash flow moving from deeply negative to positive.
Monitor the company's ability to sustain positive operating cash flow, as the filing notes that cash generation depends on efficiently acquiring and maintaining customers and pricing insurance products appropriately.