Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter, leading to a negative free cash flow and margin. However, compared to the same quarter last year, free cash flow and margin improved.
- Revenue was lower than the prior quarter, and operating cash flow turned negative, resulting in a negative free cash flow and margin. Capital expenditure was slightly lower than the prior quarter.
- Free cash flow and margin weakened significantly compared to the prior quarter, but improved compared to the same quarter one year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$716.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$257.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$239.0M
Cash generated by operations before capital spending.
CapEx
$18.0M
Capital spending and related asset purchases.
FCF margin
-10.6%
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 | $2.6B | -$66.0M | $32.0M | -$98.0M | -3.8% |
| 2023-06-30 | $3.0B | $509.0M | $18.0M | $491.0M | 16.5% |
| 2023-09-30 | $2.8B | $599.0M | $19.0M | $580.0M | 20.9% |
| 2023-12-31 | $2.4B | -$239.0M | $18.0M | -$257.0M | -10.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 225.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.6B | 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 Reversal
Operating cash flow moved from positive in the prior quarter to negative in the current quarter, while capital expenditure remained relatively stable. This change was the primary factor behind the negative free cash flow and margin.
The shift in operating cash flow directly drove the decline in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, and operating cash flow turned negative, resulting in a negative free cash flow and margin. Capital expenditure was slightly lower than the prior quarter.
Free cash flow and margin weakened significantly compared to the prior quarter, but improved compared to the same quarter one year earlier.
Monitor the trajectory of operating cash flow, as it shifted from positive to negative, and the company's access to financing given credit market conditions noted in the filing.