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 quarter, driven by negative operating cash flow and capital expenditure. The free cash flow margin weakened compared to the same quarter last year.
- Revenue was stable compared to the prior year, but operating cash flow turned negative, resulting in negative free cash flow and a negative margin.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow improved significantly, though both remained negative. Compared to the same quarter one year earlier, operating cash flow and free cash flow weakened, turning from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$513.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$86.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$11.0M
Cash generated by operations before capital spending.
CapEx
$75.0M
Capital spending and related asset purchases.
FCF margin
-1.1%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $7.4B | $753.9M | $64.3M | $689.6M | 9.3% |
| 2022-12-31 | $8.0B | $814.2M | $99.0M | $715.2M | 8.9% |
| 2023-03-31 | $7.3B | -$745.0M | $60.0M | -$805.0M | -11.0% |
| 2023-06-30 | $7.6B | -$11.0M | $75.0M | -$86.0M | -1.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -42.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.4B | 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 Turned Negative
Operating cash flow was negative in the current quarter, a reversal from positive in the same quarter last year. This was the primary factor behind the negative free cash flow.
The negative operating cash flow directly caused free cash flow to be negative, despite stable revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior year, but operating cash flow turned negative, resulting in negative free cash flow and a negative margin.
Compared to the immediately preceding quarter, operating cash flow and free cash flow improved significantly, though both remained negative. Compared to the same quarter one year earlier, operating cash flow and free cash flow weakened, turning from positive to negative.
Monitor the trajectory of operating cash flow, as it shifted from positive to negative year-over-year.