Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned positive and improved significantly compared to both the prior quarter and the same quarter a year ago. The improvement was driven by a substantial increase in operating cash flow, while capital expenditure remained relatively stable.
- Revenue rose compared to both the prior quarter and the year-ago quarter. Operating cash flow increased sharply, leading to a positive free cash flow margin, which was in contrast to negative margins in the earlier periods. Capital expenditure was slightly lower than the prior quarter but higher than the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow improved from a negative to a positive figure, with a higher margin. Versus the same quarter one year earlier, free cash flow also improved from negative to positive, and the margin strengthened significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$601.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$358.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$397.0M
Cash generated by operations before capital spending.
CapEx
$39.0M
Capital spending and related asset purchases.
FCF margin
17.6%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $1.6B | $165.0M | $45.0M | $120.0M | 7.5% |
| 2022-09-30 | $1.7B | $199.0M | $54.0M | $145.0M | 8.5% |
| 2022-12-31 | $1.8B | $23.0M | $45.0M | -$22.0M | -1.2% |
| 2023-03-31 | $2.0B | $397.0M | $39.0M | $358.0M | 17.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -222.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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.
Operating Cash Flow Surge
Operating cash flow rose substantially from both the prior quarter and the year-ago quarter, turning positive and lifting free cash flow and margin accordingly. This was the strongest observable driver of the quarter's results.
The improvement in operating cash flow was the primary factor behind the shift from negative to positive free cash flow and the expansion of the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose compared to both the prior quarter and the year-ago quarter. Operating cash flow increased sharply, leading to a positive free cash flow margin, which was in contrast to negative margins in the earlier periods. Capital expenditure was slightly lower than the prior quarter but higher than the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow improved from a negative to a positive figure, with a higher margin. Versus the same quarter one year earlier, free cash flow also improved from negative to positive, and the margin strengthened significantly.
Monitor whether operating cash flow can sustain its improved level, given the company's history of operating losses and accumulated deficit noted in the filing.