Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Carvana generated positive free cash flow in the quarter, driven by a strong operating cash flow turnaround and lower capital expenditure. Revenue declined compared to the same quarter last year but increased from the previous quarter.
- Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow turned positive, capital expenditure decreased, and free cash flow became positive with a positive margin, reflecting improved cash conversion.
- Compared to the previous quarter, all metrics improved: revenue, operating cash flow, free cash flow, and margin moved higher, while capital expenditure was lower. Versus the same quarter last year, revenue was lower but operating cash flow, free cash flow, and margin were stronger, with capital expenditure sharply reduced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$595.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$491.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$509.0M
Cash generated by operations before capital spending.
CapEx
$18.0M
Capital spending and related asset purchases.
FCF margin
16.5%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $3.0B | $509.0M | $18.0M | $491.0M | 16.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 722.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.3B | 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 turnaround
The shift from negative to positive operating cash flow was the most notable change, supported by a reduction in capital expenditure. This combination allowed the company to generate free cash flow in the quarter.
The improved operating cash flow and lower capital spending drove free cash flow from negative to positive, reversing the prior quarter's deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow turned positive, capital expenditure decreased, and free cash flow became positive with a positive margin, reflecting improved cash conversion.
Compared to the previous quarter, all metrics improved: revenue, operating cash flow, free cash flow, and margin moved higher, while capital expenditure was lower. Versus the same quarter last year, revenue was lower but operating cash flow, free cash flow, and margin were stronger, with capital expenditure sharply reduced.
Monitor whether operating cash flow can sustain its positive trajectory given the lower revenue base compared to the prior year.