Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative as operating cash flow weakened sharply while capital spending remained elevated. Revenue was slightly higher than the prior quarter but lower than the same quarter last year.
- Cash conversion weakened significantly: operating cash flow was a small fraction of revenue, and after capital expenditure, free cash flow turned negative, resulting in a negative margin.
- Compared to the prior quarter, operating cash flow and free cash flow both declined substantially, and the margin shifted from positive to negative. Versus the same quarter last year, revenue was lower, operating cash flow was much lower, and free cash flow turned from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$543.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$62.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9M
Cash generated by operations before capital spending.
CapEx
$64.5M
Capital spending and related asset purchases.
FCF margin
-3.0%
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 |
|---|---|---|---|---|---|
| 2022-07-02 | $2.3B | $268.2M | $57.1M | $211.1M | 9.0% |
| 2022-10-01 | $2.3B | $220.8M | $76.4M | $144.4M | 6.2% |
| 2022-12-31 | $2.0B | $345.8M | $94.9M | $250.9M | 12.4% |
| 2023-04-01 | $2.1B | $1.9M | $64.5M | -$62.6M | -3.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -51.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | 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 Weakness
Operating cash flow was the primary factor behind the negative free cash flow, as it dropped sharply from both the prior quarter and the year-ago period.
The steep decline in operating cash flow overwhelmed the reduction in capital expenditure, driving free cash flow deeply negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened significantly: operating cash flow was a small fraction of revenue, and after capital expenditure, free cash flow turned negative, resulting in a negative margin.
Compared to the prior quarter, operating cash flow and free cash flow both declined substantially, and the margin shifted from positive to negative. Versus the same quarter last year, revenue was lower, operating cash flow was much lower, and free cash flow turned from positive to negative.
Monitor whether operating cash flow recovers from its current low level in the coming quarters.