Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the current quarter, driven by a large operating cash outflow that more than offset modest capital spending. Revenue was stable compared to both the prior quarter and the same quarter last year, while free cash flow margin turned deeply negative.
- Revenue was unchanged from the prior quarter and the year-ago quarter, but operating cash flow swung from a large positive in the prior quarter to a negative figure, resulting in negative free cash flow and a negative margin. Capital expenditure was lower than both comparison periods, yet the operating cash outflow overwhelmed any benefit from reduced spending.
- Compared to the immediately preceding quarter, free cash flow weakened sharply from a large positive to a negative, while revenue was stable. Versus the same quarter one year earlier, free cash flow was slightly less negative, with revenue essentially flat and capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$952.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$271.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$251.9M
Cash generated by operations before capital spending.
CapEx
$19.5M
Capital spending and related asset purchases.
FCF margin
-13.6%
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 | $1.9B | -$73.3M | $15.4M | -$88.7M | -4.6% |
| 2023-06-30 | $2.0B | $654.3M | $78.7M | $575.6M | 29.2% |
| 2023-09-30 | $2.0B | $764.5M | $27.3M | $737.2M | 37.1% |
| 2023-12-31 | $2.0B | -$251.9M | $19.5M | -$271.4M | -13.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -108.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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 turned from a large positive in the prior quarter to a negative in the current quarter, while revenue remained unchanged. This swing was the strongest observable driver of the negative free cash flow.
The negative operating cash flow directly caused free cash flow to be negative, despite lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter and the year-ago quarter, but operating cash flow swung from a large positive in the prior quarter to a negative figure, resulting in negative free cash flow and a negative margin. Capital expenditure was lower than both comparison periods, yet the operating cash outflow overwhelmed any benefit from reduced spending.
Compared to the immediately preceding quarter, free cash flow weakened sharply from a large positive to a negative, while revenue was stable. Versus the same quarter one year earlier, free cash flow was slightly less negative, with revenue essentially flat and capital expenditure lower.
Monitor whether operating cash flow returns to positive territory in the coming quarter, as the current quarter's outflow was the primary driver of the negative free cash flow.