Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned positive compared to a year ago, though it declined from the prior quarter as operating cash flow decreased more than capital expenditure. Revenue was lower than the previous quarter but higher than the same quarter last year.
- Operating cash flow as a portion of revenue weakened from the prior quarter, while capital expenditure also declined. The resulting free cash flow margin was positive, a notable improvement from the negative margin in the same quarter one year earlier.
- Compared with the immediately preceding quarter, free cash flow and free cash flow margin were lower, driven by a reduction in operating cash flow despite lower capital expenditure. Versus the same quarter one year earlier, free cash flow turned positive and the margin improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$128.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$55.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$152.4M
Cash generated by operations before capital spending.
CapEx
$97.1M
Capital spending and related asset purchases.
FCF margin
4.5%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $887.0M | $137.3M | $118.3M | $19.0M | 2.1% |
| 2022-09-30 | $1.3B | $79.6M | $139.0M | -$59.4M | -4.4% |
| 2022-12-31 | $1.4B | $220.5M | $106.9M | $113.6M | 8.3% |
| 2023-03-31 | $1.2B | $152.4M | $97.1M | $55.3M | 4.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 2171.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.5B | 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 Change
Operating cash flow decreased versus the prior quarter, significantly reducing free cash flow even as capital expenditure also fell. This was the strongest observable driver of the sequential weakening.
The decline in operating cash flow more than offset the benefit of lower capital expenditure, leading to a lower free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a portion of revenue weakened from the prior quarter, while capital expenditure also declined. The resulting free cash flow margin was positive, a notable improvement from the negative margin in the same quarter one year earlier.
Compared with the immediately preceding quarter, free cash flow and free cash flow margin were lower, driven by a reduction in operating cash flow despite lower capital expenditure. Versus the same quarter one year earlier, free cash flow turned positive and the margin improved from negative to positive.
Monitor whether operating cash flow can sustain or improve from the current quarter level, as it was the primary driver of the sequential decline in free cash flow.