Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased compared to both the prior quarter and the same quarter last year, and operating cash flow turned negative, resulting in negative free cash flow and a weakened margin. The sequential shift from positive to negative free cash flow marks a notable change in cash conversion.
- Operating cash flow was negative while capital expenditure remained steady, leading to negative free cash flow. The free cash flow margin worsened from the prior quarter and was slightly lower than the year-ago quarter.
- Compared to the preceding quarter, revenue was lower, operating cash flow moved from positive to negative, and free cash flow decreased sharply. Relative to the same quarter one year earlier, revenue also declined and operating cash flow became more negative, though capital expenditure was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$31.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$42.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$18.6M
Cash generated by operations before capital spending.
CapEx
$24.0M
Capital spending and related asset purchases.
FCF margin
-4.8%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $1.3B | $23.8M | $18.3M | $5.5M | 0.4% |
| 2022-09-30 | $1.1B | -$56.0M | $18.3M | -$74.4M | -6.8% |
| 2022-12-31 | $1.0B | $100.9M | $21.4M | $79.5M | 7.6% |
| 2023-03-31 | $887.9M | -$18.6M | $24.0M | -$42.5M | -4.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -342.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue and cash flow pressure
Revenue was lower than both comparison periods, and operating cash flow turned negative, driving free cash flow to a deficit.
This quarter's cash flow performance indicates a weakened ability to generate cash from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative while capital expenditure remained steady, leading to negative free cash flow. The free cash flow margin worsened from the prior quarter and was slightly lower than the year-ago quarter.
Compared to the preceding quarter, revenue was lower, operating cash flow moved from positive to negative, and free cash flow decreased sharply. Relative to the same quarter one year earlier, revenue also declined and operating cash flow became more negative, though capital expenditure was slightly lower.
Monitor the trend in operating cash flow, as its shift from positive to negative was the primary factor behind the free cash flow decline.