Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year, but operating cash flow turned negative and free cash flow remained deeply negative. Capital expenditure rose significantly, contributing to a larger free cash outflow.
- Cash conversion weakened sharply as operating cash flow moved from positive a year ago to negative, and also declined from the prior quarter. Despite higher revenue, the cash outflow from operations and elevated capital expenditure resulted in a larger free cash flow deficit and a negative free cash flow margin.
- Compared to the prior quarter, revenue improved but operating cash flow weakened, while capital expenditure decreased slightly; free cash flow deficit grew. Versus the same quarter a year ago, revenue was higher, operating cash flow worsened significantly, capital expenditure increased, and free cash flow turned more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$503.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$472.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$89.7M
Cash generated by operations before capital spending.
CapEx
$382.7M
Capital spending and related asset purchases.
FCF margin
-58.3%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $810.7M | -$89.7M | $382.7M | -$472.4M | -58.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -276.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 47.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $391.9M | 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 Deterioration
Operating cash flow turned negative this quarter, a significant decline from both the prior quarter and the same quarter last year, even as revenue increased. This weakening in cash generation was the primary factor behind the larger free cash outflow.
The negative operating cash flow, combined with elevated capital expenditure, drove free cash flow to a deeper deficit, raising the need for external liquidity or existing cash reserves.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened sharply as operating cash flow moved from positive a year ago to negative, and also declined from the prior quarter. Despite higher revenue, the cash outflow from operations and elevated capital expenditure resulted in a larger free cash flow deficit and a negative free cash flow margin.
Compared to the prior quarter, revenue improved but operating cash flow weakened, while capital expenditure decreased slightly; free cash flow deficit grew. Versus the same quarter a year ago, revenue was higher, operating cash flow worsened significantly, capital expenditure increased, and free cash flow turned more negative.
Monitor whether operating cash flow can return to positive levels given the sustained revenue growth and ongoing capital expenditure needs.