Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior year, but operating cash flow fell sharply, resulting in a negative free cash flow. The cash conversion weakened significantly from both the preceding quarter and the same quarter last year.
- Operating cash flow was minimal relative to revenue, yielding a negative free cash flow margin after capital expenditure. The gap between revenue and cash generation widened markedly.
- Compared to the prior quarter, revenue improved slightly but operating cash flow was much lower, and free cash flow turned from positive to negative. Versus the same quarter last year, revenue was similar while operating and free cash flow were both substantially lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$70.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0M
Cash generated by operations before capital spending.
CapEx
$71.0M
Capital spending and related asset purchases.
FCF margin
-2.2%
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 | $4.6B | -$531.0M | $79.0M | -$610.0M | -13.2% |
| 2023-03-31 | $4.1B | $1.6B | $84.0M | $1.5B | 36.3% |
| 2023-06-30 | $3.0B | $493.0M | $120.0M | $373.0M | 12.3% |
| 2023-09-30 | $3.2B | $1.0M | $71.0M | -$70.0M | -2.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -16.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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 Contraction
Operating cash flow fell sharply from the prior quarter and year-ago levels, while revenue remained stable. This drove free cash flow negative despite lower capital expenditure.
If operating cash flow does not recover, free cash flow may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was minimal relative to revenue, yielding a negative free cash flow margin after capital expenditure. The gap between revenue and cash generation widened markedly.
Compared to the prior quarter, revenue improved slightly but operating cash flow was much lower, and free cash flow turned from positive to negative. Versus the same quarter last year, revenue was similar while operating and free cash flow were both substantially lower.
Monitor the trajectory of operating cash flow, which dropped to a minimal level this quarter.