Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter a year earlier, while operating cash flow improved substantially. Free cash flow remained negative but narrowed significantly, driven by lower capital expenditure and a smaller operating cash outflow.
- Cash conversion from revenue to free cash flow strengthened as the operating cash flow deficit narrowed and capital expenditure decreased. The free cash flow margin improved sequentially and year over year, reflecting a smaller cash burn per dollar of revenue.
- Compared with the prior quarter, operating cash flow and free cash flow both improved, while capital expenditure was lower. Versus the same quarter a year ago, revenue was lower but operating cash flow and free cash flow were less negative, and capital expenditure decreased sharply.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$98.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$66.0M
Cash generated by operations before capital spending.
CapEx
$32.0M
Capital spending and related asset purchases.
FCF margin
-3.8%
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 | $3.9B | $106.0M | $141.0M | -$35.0M | -0.9% |
| 2022-09-30 | $3.4B | -$98.0M | $90.0M | -$188.0M | -5.6% |
| 2022-12-31 | $2.8B | -$739.0M | $61.0M | -$800.0M | -28.2% |
| 2023-03-31 | $2.6B | -$66.0M | $32.0M | -$98.0M | -3.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 34.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.9B | 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 Improvement
Operating cash flow improved significantly compared with both the prior quarter and the year-ago period, with a much smaller outflow. Management has emphasized initiatives to align expenses with unit volumes to drive profitability.
This improvement was the primary factor behind the narrower free cash flow deficit and the less negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion from revenue to free cash flow strengthened as the operating cash flow deficit narrowed and capital expenditure decreased. The free cash flow margin improved sequentially and year over year, reflecting a smaller cash burn per dollar of revenue.
Compared with the prior quarter, operating cash flow and free cash flow both improved, while capital expenditure was lower. Versus the same quarter a year ago, revenue was lower but operating cash flow and free cash flow were less negative, and capital expenditure decreased sharply.
Monitor whether operating cash flow can sustain its improvement or turn positive, as it remains negative despite the narrowing deficit.