Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative but improved significantly compared to both the prior quarter and the same quarter last year. The improvement was driven by a smaller operating cash outflow and reduced capital spending.
- Revenue increased from the prior quarter, while operating cash outflow narrowed, leading to a less negative free cash flow. The free cash flow margin improved substantially, reflecting better cash conversion relative to revenue.
- Compared to the prior quarter, free cash flow was less negative, supported by higher revenue and lower capital expenditure. Versus the same quarter last year, all cash flow metrics improved markedly, with operating cash flow and free cash flow showing much smaller deficits.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$251.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$47.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$42.2M
Cash generated by operations before capital spending.
CapEx
$5.3M
Capital spending and related asset purchases.
FCF margin
-51.5%
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 | $147.0M | -$70.5M | $20.4M | -$90.9M | -61.8% |
| 2022-10-01 | $82.5M | -$34.7M | $18.0M | -$52.6M | -63.8% |
| 2022-12-31 | $79.9M | -$49.9M | $10.5M | -$60.4M | -75.6% |
| 2023-04-01 | $92.2M | -$42.2M | $5.3M | -$47.5M | -51.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 80.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$876.0M | 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 Improvement
Operating cash outflow decreased sharply from both the prior quarter and the year-ago quarter, even as revenue rose sequentially. This was the strongest observable driver of the improved free cash flow.
The narrower operating cash deficit directly reduced the free cash flow shortfall and improved the cash conversion rate.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, while operating cash outflow narrowed, leading to a less negative free cash flow. The free cash flow margin improved substantially, reflecting better cash conversion relative to revenue.
Compared to the prior quarter, free cash flow was less negative, supported by higher revenue and lower capital expenditure. Versus the same quarter last year, all cash flow metrics improved markedly, with operating cash flow and free cash flow showing much smaller deficits.
Monitor whether operating cash flow can continue to narrow its deficit as revenue trends evolve.