Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was deeply negative, driving free cash flow deeply negative despite a slight revenue increase. Capital expenditure rose moderately, which combined with negative operating cash flow to produce a larger free cash deficit than a year ago.
- Revenue increased, but operating cash flow remained deeply negative due to heavy cash outflows from operations, resulting in a deeply negative free cash flow and free cash flow margin. Capital expenditure increased, further pressuring free cash flow.
- Compared with the immediate prior quarter, revenue was higher while operating cash flow and free cash flow were less negative, and the free cash flow margin improved significantly. Versus the same quarter one year earlier, revenue was higher, but free cash flow was more negative and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$7.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$282.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$247.9M
Cash generated by operations before capital spending.
CapEx
$34.3M
Capital spending and related asset purchases.
FCF margin
-242.6%
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 | $95.5M | -$2.2B | $23.7M | -$2.2B | -2342.3% |
| 2023-06-30 | $104.7M | -$2.1B | $25.4M | -$2.1B | -2010.9% |
| 2023-09-30 | $104.9M | -$2.7B | $28.0M | -$2.7B | -2586.7% |
| 2023-12-31 | $116.3M | -$247.9M | $34.3M | -$282.2M | -242.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -589.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 29.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sizable negative operating cash flow
Operating cash flow was deeply negative, far outweighing the revenue level. While it improved from the prior quarter's extreme negative level, it remained a strong drag on overall cash generation.
This kept free cash flow deeply negative despite higher revenue and a reduced capital expenditure burden relative to operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, but operating cash flow remained deeply negative due to heavy cash outflows from operations, resulting in a deeply negative free cash flow and free cash flow margin. Capital expenditure increased, further pressuring free cash flow.
Compared with the immediate prior quarter, revenue was higher while operating cash flow and free cash flow were less negative, and the free cash flow margin improved significantly. Versus the same quarter one year earlier, revenue was higher, but free cash flow was more negative and the margin weakened.
Monitor whether operating cash flow can move toward breakeven given the persistent large negative gap relative to revenue.