Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Free cash flow turned negative from positive in the prior quarter, but improved from the negative level a year ago.
- Operating cash flow decreased significantly from the prior quarter but increased compared to the same quarter last year. Capital expenditure was slightly lower than the prior quarter but higher than a year ago, resulting in negative free cash flow and a negative margin.
- Compared to the prior quarter, operating cash flow weakened while capital expenditure remained similar, causing free cash flow to turn negative. Versus the same quarter last year, operating cash flow improved and free cash flow was less negative, despite higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$21.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$137.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$128.8M
Cash generated by operations before capital spending.
CapEx
$265.9M
Capital spending and related asset purchases.
FCF margin
-10.4%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $1.3B | $291.4M | $169.2M | $122.2M | 9.5% |
| 2022-09-30 | $1.3B | $214.4M | $266.6M | -$52.1M | -4.1% |
| 2022-12-31 | $1.3B | $367.3M | $278.6M | $88.8M | 6.9% |
| 2023-03-31 | $1.3B | $128.8M | $265.9M | -$137.1M | -10.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -209.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.8B | 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 Decline
Operating cash flow decreased substantially from the prior quarter, while capital expenditure remained relatively stable. This shift was the strongest observable driver of the negative free cash flow.
The decline in operating cash flow reversed the prior quarter's positive free cash flow, resulting in a negative margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased significantly from the prior quarter but increased compared to the same quarter last year. Capital expenditure was slightly lower than the prior quarter but higher than a year ago, resulting in negative free cash flow and a negative margin.
Compared to the prior quarter, operating cash flow weakened while capital expenditure remained similar, causing free cash flow to turn negative. Versus the same quarter last year, operating cash flow improved and free cash flow was less negative, despite higher capital expenditure.
Monitor the trajectory of operating cash flow, as its decline from the prior quarter was the primary factor behind the negative free cash flow.