Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both declined from the prior quarter and from the same quarter last year. Operating cash flow improved sequentially but remained well below the year-ago level.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased relative to both comparison periods, resulting in a free cash flow margin that improved from negative to positive sequentially but weakened sharply from the prior year.
- Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow was substantially higher, turning free cash flow from negative to positive. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$51.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$12.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$49.2M
Cash generated by operations before capital spending.
CapEx
$36.3M
Capital spending and related asset purchases.
FCF margin
3.5%
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 |
|---|---|---|---|---|---|
| 2022-10-01 | $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% |
| 2023-07-01 | $370.8M | $49.2M | $36.3M | $12.9M | 3.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -21.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.8% | 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.
Operating Cash Flow Recovery
Operating cash flow increased substantially from the prior quarter, reversing the negative free cash flow position. This improvement was the strongest observable sequential change among the supplied metrics.
The higher operating cash flow was the primary factor enabling positive free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased relative to both comparison periods, resulting in a free cash flow margin that improved from negative to positive sequentially but weakened sharply from the prior year.
Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow was substantially higher, turning free cash flow from negative to positive. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened.
Monitor capital expenditure relative to operating cash flow, as it consumed a larger share of operating cash flow in the current quarter compared to both prior periods.