Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue held steady versus the prior quarter but declined from the same period a year ago. Operating cash flow dropped sharply, turning free cash flow negative as capital expenditure increased relative to the previous quarter.
- Operating cash flow as a proportion of revenue weakened significantly compared to both the prior quarter and the year-ago quarter, resulting in a negative free cash flow margin.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both fell while capital expenditure rose; versus the same quarter last year, all three metrics were lower except capital expenditure, which was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$256.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$24.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$67.2M
Cash generated by operations before capital spending.
CapEx
$91.5M
Capital spending and related asset purchases.
FCF margin
-2.1%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $1.2B | $152.4M | $97.1M | $55.3M | 4.5% |
| 2023-06-30 | $1.2B | $181.5M | $93.1M | $88.5M | 7.3% |
| 2023-09-30 | $1.1B | $198.8M | $62.2M | $136.6M | 13.0% |
| 2023-12-31 | $1.1B | $67.2M | $91.5M | -$24.3M | -2.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 90.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.4B | 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 Decline
Operating cash flow was lower than the prior quarter and the year-ago quarter, while revenue was stable sequentially, indicating a weaker cash conversion from sales.
The negative free cash flow resulted from operating cash flow falling short of capital expenditure, a reversal from positive free cash flow in both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue weakened significantly compared to both the prior quarter and the year-ago quarter, resulting in a negative free cash flow margin.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both fell while capital expenditure rose; versus the same quarter last year, all three metrics were lower except capital expenditure, which was also lower.
Monitor whether capital expenditure continues to exceed operating cash flow, as this pattern directly affects free cash flow generation.