Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue held stable sequentially and grew from a year ago, while operating cash flow turned negative, resulting in a negative free cash flow margin. The cash conversion weakened from both the prior quarter and the prior year quarter, driven by a reversal in operating cash flow.
- Revenue was stable quarter over quarter, yet operating cash flow swung from a positive to a negative figure, and capital expenditure increased, producing a negative free cash flow. The free cash flow margin dropped below zero, indicating a cash conversion significantly lower than the previous quarter's positive level.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both turned from positive to negative, and the free cash flow margin weakened from positive to negative. Versus the same quarter one year earlier, revenue was higher, while operating cash flow remained negative at a similar magnitude, and free cash flow was negative at a comparable level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$448.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$107.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$84.6M
Cash generated by operations before capital spending.
CapEx
$23.2M
Capital spending and related asset purchases.
FCF margin
-3.7%
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 | $2.7B | $77.0M | $16.2M | $60.7M | 2.2% |
| 2022-09-30 | $2.8B | $257.2M | $11.0M | $246.2M | 8.7% |
| 2022-12-31 | $2.9B | $259.6M | $10.6M | $249.0M | 8.4% |
| 2023-03-31 | $2.9B | -$84.6M | $23.2M | -$107.7M | -3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -96.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | 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 Reversal
Operating cash flow shifted from positive in the prior quarter to negative in the current quarter, despite stable revenue. This swing is the strongest observable driver of the free cash flow decline.
It pulled free cash flow and free cash flow margin below zero, reversing the positive performance from the previous quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable quarter over quarter, yet operating cash flow swung from a positive to a negative figure, and capital expenditure increased, producing a negative free cash flow. The free cash flow margin dropped below zero, indicating a cash conversion significantly lower than the previous quarter's positive level.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both turned from positive to negative, and the free cash flow margin weakened from positive to negative. Versus the same quarter one year earlier, revenue was higher, while operating cash flow remained negative at a similar magnitude, and free cash flow was negative at a comparable level.
Monitor whether operating cash flow returns to positive in the next quarter, as the current quarter's reversal is the primary factor behind the negative free cash flow.