Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned negative, driving free cash flow deeply negative despite revenue being stable sequentially. The free cash flow margin weakened sharply from the prior quarter but improved compared with the same quarter last year.
- Revenue was unchanged from the prior quarter, yet operating cash flow swung from positive to negative, resulting in a negative free cash flow and a negative margin. Capital expenditure was lower than the prior quarter but higher than a year ago.
- Compared with the prior quarter, operating cash flow and free cash flow both weakened significantly, and the margin turned negative. Versus the same quarter last year, operating cash flow and free cash flow improved, and the margin was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$772.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$137.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$98.9M
Cash generated by operations before capital spending.
CapEx
$38.1M
Capital spending and related asset purchases.
FCF margin
-9.7%
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 | $1.5B | $123.1M | $33.2M | $89.9M | 5.9% |
| 2022-09-30 | $1.4B | $492.0M | $62.7M | $429.3M | 29.7% |
| 2022-12-31 | $1.4B | $463.5M | $73.1M | $390.4M | 27.0% |
| 2023-03-31 | $1.4B | -$98.9M | $38.1M | -$137.0M | -9.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -94.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$599.1M | 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 moved from a large positive in the prior quarter to a negative figure this quarter, while revenue was stable. This swing is the strongest observable driver of the free cash flow decline.
The negative operating cash flow directly caused free cash flow to turn negative despite lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, yet operating cash flow swung from positive to negative, resulting in a negative free cash flow and a negative margin. Capital expenditure was lower than the prior quarter but higher than a year ago.
Compared with the prior quarter, operating cash flow and free cash flow both weakened significantly, and the margin turned negative. Versus the same quarter last year, operating cash flow and free cash flow improved, and the margin was less negative.
Monitor whether operating cash flow can return to positive levels in the coming quarter.