Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's free cash flow turned deeply negative as operating cash flow swung sharply from positive to negative. Revenue was slightly lower than the prior quarter but higher than the same quarter last year.
- Operating cash flow was negative, resulting in a deeply negative free cash flow and free cash flow margin, despite minimal capital expenditure. The cash conversion from revenue was severely impaired this quarter.
- Compared to the immediately preceding quarter, operating cash flow weakened from positive to negative, and free cash flow worsened accordingly. Compared to the same quarter one year earlier, operating cash flow and free cash flow both remained negative but were more negative this quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$398.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$978.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$977.0M
Cash generated by operations before capital spending.
CapEx
$1.0M
Capital spending and related asset purchases.
FCF margin
-209.4%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $380.0M | $181.0M | $3.0M | $178.0M | 46.8% |
| 2023-03-31 | $441.0M | $828.0M | $0 | $828.0M | 187.8% |
| 2023-06-30 | $486.0M | $370.0M | $0 | $370.0M | 76.1% |
| 2023-09-30 | $467.0M | -$977.0M | $1.0M | -$978.0M | -209.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1150.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | 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.
Sharp operating cash outflow
Operating cash flow turned sharply negative this quarter, which is the strongest observable driver of the negative free cash flow. This occurred despite revenue being stable relative to recent quarters.
The reversal in operating cash flow caused free cash flow to decline significantly from positive to deeply negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, resulting in a deeply negative free cash flow and free cash flow margin, despite minimal capital expenditure. The cash conversion from revenue was severely impaired this quarter.
Compared to the immediately preceding quarter, operating cash flow weakened from positive to negative, and free cash flow worsened accordingly. Compared to the same quarter one year earlier, operating cash flow and free cash flow both remained negative but were more negative this quarter.
Monitor operating cash flow for signs of reversal from the large negative figure observed this quarter.