Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter, though the margin remained modest. Cash generation improved from the prior quarter but weakened compared with the same quarter one year earlier.
- Revenue was slightly higher than both the prior quarter and the year-ago quarter. Operating cash flow turned positive, capital expenditure increased, and free cash flow was positive, resulting in a low free cash flow margin.
- Compared with the prior quarter, operating cash flow improved from negative to positive and free cash flow turned positive, while capital expenditure was higher. Compared with the year-ago quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$374.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$14.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$82.0M
Cash generated by operations before capital spending.
CapEx
$68.0M
Capital spending and related asset purchases.
FCF margin
0.5%
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 | $2.6B | -$19.0M | $77.0M | -$96.0M | -3.7% |
| 2022-12-31 | $2.8B | $601.0M | $93.0M | $508.0M | 18.1% |
| 2023-03-31 | $2.7B | -$9.0M | $43.0M | -$52.0M | -1.9% |
| 2023-06-30 | $2.8B | $82.0M | $68.0M | $14.0M | 0.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 10.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.6B | 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 recovery
Operating cash flow moved from negative in the prior quarter to positive in the current quarter, providing the primary support for free cash flow generation.
This improvement enabled the company to report positive free cash flow after a negative prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than both the prior quarter and the year-ago quarter. Operating cash flow turned positive, capital expenditure increased, and free cash flow was positive, resulting in a low free cash flow margin.
Compared with the prior quarter, operating cash flow improved from negative to positive and free cash flow turned positive, while capital expenditure was higher. Compared with the year-ago quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
Monitor trade working capital trends, as the filing notes their impact on cash flow from operations.