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 fell sharply while capital expenditure remained elevated. Revenue declined compared to both the prior quarter and the same quarter last year.
- Operating cash flow was significantly lower than revenue, resulting in a negative free cash flow margin. Capital expenditure exceeded operating cash flow, amplifying the cash conversion weakness.
- Compared to the prior quarter, operating cash flow and free cash flow both weakened substantially, while capital expenditure decreased. Versus the same quarter last year, operating cash flow and free cash flow were also lower, with capital expenditure reduced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$794.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$4.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$20.0M
Cash generated by operations before capital spending.
CapEx
$24.0M
Capital spending and related asset purchases.
FCF margin
-0.3%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $1.7B | $209.0M | $42.0M | $167.0M | 9.7% |
| 2023-03-31 | $1.9B | $341.0M | $56.0M | $285.0M | 14.9% |
| 2023-06-30 | $2.0B | $430.0M | $84.0M | $346.0M | 17.1% |
| 2023-09-30 | $1.4B | $20.0M | $24.0M | -$4.0M | -0.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -18.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | 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 Decline
Operating cash flow dropped sharply from both the prior quarter and the year-ago quarter, driving free cash flow into negative territory. This was the strongest observable factor in the cash conversion deterioration.
The decline in operating cash flow was the primary reason free cash flow turned negative despite lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was significantly lower than revenue, resulting in a negative free cash flow margin. Capital expenditure exceeded operating cash flow, amplifying the cash conversion weakness.
Compared to the prior quarter, operating cash flow and free cash flow both weakened substantially, while capital expenditure decreased. Versus the same quarter last year, operating cash flow and free cash flow were also lower, with capital expenditure reduced.
Monitor whether operating cash flow can recover to a level that covers capital expenditure and generates positive free cash flow.