Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by a significant improvement in operating cash flow compared to both the prior quarter and the same quarter last year. The free cash flow margin also shifted from negative to positive, reflecting stronger cash generation relative to revenue.
- Revenue was slightly lower than the prior quarter and the year-ago quarter, but operating cash flow improved markedly, rising from negative levels in both comparison periods to a positive figure. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter, and the resulting free cash flow turned positive with a margin that improved from negative to positive.
- Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow improved from negative to positive, capital expenditure was higher, and free cash flow turned from negative to positive. Compared to the same quarter one year earlier, revenue was lower, operating cash flow improved from negative to positive, capital expenditure was lower, and free cash flow turned from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$79.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$111.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$343.0M
Cash generated by operations before capital spending.
CapEx
$232.0M
Capital spending and related asset purchases.
FCF margin
3.7%
The share of revenue converted into free cash flow.
TTM FCF yield
0.1%
TTM FCF divided by market capitalization.
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 | $3.3B | $86.0M | $96.0M | -$10.0M | -0.3% |
| 2022-09-30 | $3.3B | $419.0M | $155.0M | $264.0M | 8.0% |
| 2022-12-31 | $3.1B | -$126.0M | $160.0M | -$286.0M | -9.2% |
| 2023-03-31 | $3.0B | $343.0M | $232.0M | $111.0M | 3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 43.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.7% | 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 Recovery
Operating cash flow improved from negative in both the prior quarter and the year-ago quarter to a positive figure this quarter. This shift was the primary factor behind the transition from negative to positive free cash flow.
The improvement in operating cash flow directly enabled free cash flow to turn positive and the margin to improve from negative to positive.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter and the year-ago quarter, but operating cash flow improved markedly, rising from negative levels in both comparison periods to a positive figure. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter, and the resulting free cash flow turned positive with a margin that improved from negative to positive.
Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow improved from negative to positive, capital expenditure was higher, and free cash flow turned from negative to positive. Compared to the same quarter one year earlier, revenue was lower, operating cash flow improved from negative to positive, capital expenditure was lower, and free cash flow turned from negative to positive.
Monitor whether operating cash flow can sustain its positive level given that revenue was slightly lower than both comparison periods.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $55.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 0.1% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 754.7x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.