Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. However, operating cash flow turned negative, leading to a negative free cash flow, though the free cash flow margin improved relative to the year-ago period.
- Despite higher revenue, operating cash flow was negative, and capital expenditure increased, resulting in negative free cash flow. The free cash flow margin was negative, reflecting weaker cash conversion compared to the prior quarter.
- Compared to the immediately preceding quarter, free cash flow shifted from positive to negative, driven by a decline in operating cash flow and higher capital spending. Relative to the same quarter one year earlier, free cash flow was less negative, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$590.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$278.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$9.0M
Cash generated by operations before capital spending.
CapEx
$269.0M
Capital spending and related asset purchases.
FCF margin
-5.8%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $4.1B | $95.0M | $207.0M | -$112.0M | -2.8% |
| 2022-09-30 | $4.6B | $437.0M | $212.0M | $225.0M | 4.9% |
| 2022-12-31 | $4.6B | $933.0M | $178.0M | $755.0M | 16.3% |
| 2023-03-31 | $4.8B | -$9.0M | $269.0M | -$278.0M | -5.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -171.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.6% | 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.
Operating Cash Flow Swing
Operating cash flow moved from positive in the prior quarter to negative in the current quarter, while capital expenditure increased. This combination drove the negative free cash flow.
The negative free cash flow reduces liquidity available for discretionary uses.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was negative, and capital expenditure increased, resulting in negative free cash flow. The free cash flow margin was negative, reflecting weaker cash conversion compared to the prior quarter.
Compared to the immediately preceding quarter, free cash flow shifted from positive to negative, driven by a decline in operating cash flow and higher capital spending. Relative to the same quarter one year earlier, free cash flow was less negative, and the free cash flow margin improved.
Monitor the trajectory of operating cash flow, as it turned negative despite revenue growth.