Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved from both the prior quarter and the same quarter last year, but operating cash flow turned negative, driving free cash flow deeply negative and weakening the free cash flow margin. The sharp decline in cash conversion was the strongest observable change, despite a modest increase in capital expenditure.
- Revenue was positive, but operating cash flow was negative, resulting in negative free cash flow and a negative free cash flow margin. This contrasts sharply with both the prior quarter and the year-ago quarter, where operating cash flow and free cash flow were positive, indicating a significant weakening in cash conversion efficiency.
- Compared to the prior quarter, revenue increased while operating cash flow swung from positive to negative, free cash flow fell from positive to negative, and the free cash flow margin declined sharply. Versus the same quarter one year earlier, revenue improved, but operating cash flow, free cash flow, and free cash flow margin all weakened, even though the year-ago quarter had negative revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$99.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$49.0M
Cash generated by operations before capital spending.
CapEx
$50.0M
Capital spending and related asset purchases.
FCF margin
-28.1%
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 | $348.0M | $1.5B | $45.0M | $1.5B | 424.1% |
| 2022-12-31 | $6.0B | $1.1B | $53.0M | $1.0B | 17.1% |
| 2023-03-31 | $338.0M | $871.0M | $49.0M | $822.0M | 243.2% |
| 2023-06-30 | $352.0M | -$49.0M | $50.0M | -$99.0M | -28.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -18.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.2% | 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 Swing
Operating cash flow turned negative this quarter, a dramatic reversal from the prior quarter's strong positive figure and the year-ago quarter's positive level, despite higher revenue. This shift was the largest observable change and directly caused free cash flow to turn negative.
The negative operating cash flow eliminated the positive contribution from revenue growth and drove free cash flow deeply negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was positive, but operating cash flow was negative, resulting in negative free cash flow and a negative free cash flow margin. This contrasts sharply with both the prior quarter and the year-ago quarter, where operating cash flow and free cash flow were positive, indicating a significant weakening in cash conversion efficiency.
Compared to the prior quarter, revenue increased while operating cash flow swung from positive to negative, free cash flow fell from positive to negative, and the free cash flow margin declined sharply. Versus the same quarter one year earlier, revenue improved, but operating cash flow, free cash flow, and free cash flow margin all weakened, even though the year-ago quarter had negative revenue.
Monitor whether operating cash flow can return to positive territory in the coming quarter, as it is the primary driver of free cash flow.