Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the quarter, as capital expenditure exceeded operating cash flow. Revenue was higher than in the prior quarter but lower than a year earlier.
- Operating cash flow improved sharply from a year ago but declined from the prior quarter. With capital expenditure rising relative to both periods, free cash flow turned negative from positive in the prior quarter, and the free cash flow margin weakened.
- Compared with the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Versus the same quarter a year ago, revenue was lower, but operating cash flow and free cash flow were higher, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$19.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$48.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$127.0M
Cash generated by operations before capital spending.
CapEx
$175.0M
Capital spending and related asset purchases.
FCF margin
-1.6%
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 | $3.3B | -$47.0M | $104.0M | -$151.0M | -4.6% |
| 2022-09-30 | $3.1B | $240.0M | $108.0M | $132.0M | 4.3% |
| 2022-12-31 | $2.8B | $208.0M | $160.0M | $48.0M | 1.7% |
| 2023-03-31 | $3.0B | $127.0M | $175.0M | -$48.0M | -1.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 533.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure outstripping operating cash flow
Capital expenditure increased sequentially and year-over-year, while operating cash flow declined from the prior quarter. This divergence was the primary observable factor behind the swing to negative free cash flow.
The quarter's free cash flow turned negative, reversing the positive position of the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved sharply from a year ago but declined from the prior quarter. With capital expenditure rising relative to both periods, free cash flow turned negative from positive in the prior quarter, and the free cash flow margin weakened.
Compared with the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Versus the same quarter a year ago, revenue was lower, but operating cash flow and free cash flow were higher, and the margin improved.
Monitor the relationship between operating cash flow and capital expenditure, as the current quarter's capital expenditure exceeded operating cash flow, leading to negative free cash flow.