Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. However, operating cash flow turned negative, resulting in negative free cash flow, though significantly improved from the prior year's large negative figure.
- Despite higher revenue, operating cash flow was negative, leading to a negative free cash flow margin. The conversion of revenue into cash was weaker than the prior quarter but stronger than the same quarter last year.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, with the margin turning from positive to negative. Compared to the same quarter one year earlier, all metrics improved: revenue was higher, operating cash flow was less negative, free cash flow was less negative, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$781.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$30.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$3.7M
Cash generated by operations before capital spending.
CapEx
$26.7M
Capital spending and related asset purchases.
FCF margin
-2.8%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $1.3B | $714.7M | $31.8M | $682.9M | 50.8% |
| 2023-03-31 | $791.6M | $59.5M | $25.0M | $34.6M | 4.4% |
| 2023-06-30 | $675.8M | $125.3M | $30.7M | $94.5M | 14.0% |
| 2023-09-30 | $1.1B | -$3.7M | $26.7M | -$30.4M | -2.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -17.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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.
Reduced operating cash outflow
Operating cash flow, while still negative, was substantially less negative than the same quarter last year, which drove a significant improvement in free cash flow.
This reduction in cash outflow was the primary factor behind the improved free cash flow compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was negative, leading to a negative free cash flow margin. The conversion of revenue into cash was weaker than the prior quarter but stronger than the same quarter last year.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, with the margin turning from positive to negative. Compared to the same quarter one year earlier, all metrics improved: revenue was higher, operating cash flow was less negative, free cash flow was less negative, and the margin improved.
Monitor whether operating cash flow can return to positive levels in upcoming quarters.