Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both declined compared to the prior quarter and the same quarter last year. Capital expenditure also decreased, but free cash flow turned negative, resulting in a weakened cash conversion margin.
- Operating cash flow was lower than capital expenditure, leading to negative free cash flow and a negative margin. This represents a deterioration from the positive margins in both comparison periods.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased, and the margin shifted from positive to negative. Versus the same quarter one year earlier, revenue was slightly lower, while operating cash flow and free cash flow were substantially lower, with margin turning negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$124.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$14.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$14.9M
Cash generated by operations before capital spending.
CapEx
$29.4M
Capital spending and related asset purchases.
FCF margin
-3.8%
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 |
|---|---|---|---|---|---|
| 2022-07-02 | $422.1M | $114.3M | $28.6M | $85.7M | 20.3% |
| 2022-10-01 | $506.8M | $20.8M | $22.9M | -$2.1M | -0.4% |
| 2022-12-31 | $506.0M | $94.9M | $39.9M | $55.0M | 10.9% |
| 2023-04-01 | $383.4M | $14.9M | $29.4M | -$14.5M | -3.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 36.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Decline in Operating Cash Flow
Operating cash flow fell sharply from both the prior quarter and the year-ago quarter, despite a smaller decline in revenue. This was the primary factor behind the negative free cash flow.
The company's ability to generate cash from operations weakened significantly this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than capital expenditure, leading to negative free cash flow and a negative margin. This represents a deterioration from the positive margins in both comparison periods.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased, and the margin shifted from positive to negative. Versus the same quarter one year earlier, revenue was slightly lower, while operating cash flow and free cash flow were substantially lower, with margin turning negative.
Monitor the company's cash and short-term investment balances, which decreased notably from the beginning of the fiscal year as disclosed in the filing.