Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow narrowed sharply as capital expenditure almost matched operating cash flow, yielding a minimal margin. Revenue was stable versus the prior quarter but lower than the year-ago quarter, while operating cash flow declined from both comparisons.
- Revenue was roughly unchanged from the prior quarter, yet operating cash flow dropped significantly, and capital expenditure rose. This combination resulted in free cash flow and margin falling to near zero, indicating a weakened cash conversion efficiency compared with both the immediate prior quarter and the year-ago quarter.
- Compared with the prior quarter, free cash flow and margin each decreased substantially as operating cash flow fell and capital expenditure increased. Versus the year-ago quarter, operating cash flow was slightly higher but capital expenditure was also higher, resulting in a significantly lower free cash flow and margin, though still positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$275.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$109.4M
Cash generated by operations before capital spending.
CapEx
$106.9M
Capital spending and related asset purchases.
FCF margin
0.2%
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 |
|---|---|---|---|---|---|
| 2022-06-25 | $973.1M | $149.5M | $82.9M | $66.6M | 6.8% |
| 2022-09-24 | $989.2M | $132.8M | $72.4M | $60.4M | 6.1% |
| 2022-12-31 | $1.1B | $234.8M | $89.0M | $145.7M | 13.3% |
| 2023-04-01 | $1.0B | $109.4M | $106.9M | $2.5M | 0.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 2.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.4% | 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.
Elevated capital expenditure relative to operating cash flow
Capital expenditure in the current quarter was nearly equal to operating cash flow, a stark shift from the prior period and the year-ago period. This was the strongest observable factor that reduced free cash flow to a minimal level.
The near-equivalence of capital expenditure and operating cash flow compressed free cash flow to a negligible amount, sharply lowering the margin from both comparative periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was roughly unchanged from the prior quarter, yet operating cash flow dropped significantly, and capital expenditure rose. This combination resulted in free cash flow and margin falling to near zero, indicating a weakened cash conversion efficiency compared with both the immediate prior quarter and the year-ago quarter.
Compared with the prior quarter, free cash flow and margin each decreased substantially as operating cash flow fell and capital expenditure increased. Versus the year-ago quarter, operating cash flow was slightly higher but capital expenditure was also higher, resulting in a significantly lower free cash flow and margin, though still positive.
Monitor whether capital expenditure remains elevated relative to operating cash flow in subsequent quarters, as this directly constrains free cash flow generation.