Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared with the same quarter last year but decreased from the prior quarter. Free cash flow remained negative, though its margin improved relative to the year-ago period.
- Operating cash flow was negative, and capital expenditure was elevated, resulting in a negative free cash flow. The free cash flow margin was negative, though better than the same quarter one year earlier.
- Compared with the previous quarter, operating cash flow shifted from positive to negative and free cash flow turned from positive to negative. Compared with the same quarter one year earlier, free cash flow remained negative but the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$142.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$405.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$34.6M
Cash generated by operations before capital spending.
CapEx
$371.0M
Capital spending and related asset purchases.
FCF margin
-74.0%
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 | $621.0M | $88.0M | $198.7M | -$110.7M | -17.8% |
| 2022-09-30 | $628.9M | $129.0M | $223.3M | -$94.3M | -15.0% |
| 2022-12-31 | $1.0B | $795.2M | $326.9M | $468.3M | 46.7% |
| 2023-03-31 | $548.3M | -$34.6M | $371.0M | -$405.6M | -74.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -952.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 67.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $585.6M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Shift in Operating Cash Flow
Operating cash flow was positive in the preceding quarter but turned negative in the current quarter. This shift, combined with elevated capital expenditure, drove free cash flow deeply negative.
The negative operating cash flow and high capital spending together resulted in a substantial free cash outflow for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and capital expenditure was elevated, resulting in a negative free cash flow. The free cash flow margin was negative, though better than the same quarter one year earlier.
Compared with the previous quarter, operating cash flow shifted from positive to negative and free cash flow turned from positive to negative. Compared with the same quarter one year earlier, free cash flow remained negative but the margin improved.
Monitor whether operating cash flow returns to positive territory in upcoming quarters.