Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter last year. Operating cash flow turned negative, and free cash flow was also negative, resulting in a weakened cash conversion profile.
- Revenue decreased while operating cash flow shifted from positive to negative, and capital expenditure increased, leading to a negative free cash flow and a worsened free cash flow margin.
- Compared to the prior quarter, revenue was lower, operating cash flow weakened from positive to negative, capital expenditure was higher, and free cash flow turned from positive to negative. Compared to the same quarter last year, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow remained negative but at a larger magnitude.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$6.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$60.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$2.3M
Cash generated by operations before capital spending.
CapEx
$57.8M
Capital spending and related asset purchases.
FCF margin
-18.9%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $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% |
| 2023-09-30 | $317.6M | -$2.3M | $57.8M | -$60.1M | -18.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.2% | 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.
Negative Operating Cash Flow
Operating cash flow was negative this quarter, a decline from positive levels in both the prior quarter and the same quarter last year. This was the strongest observable driver of the negative free cash flow.
The negative operating cash flow, combined with higher capital expenditure, resulted in a larger negative free cash flow compared to both the prior quarter and the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased while operating cash flow shifted from positive to negative, and capital expenditure increased, leading to a negative free cash flow and a worsened free cash flow margin.
Compared to the prior quarter, revenue was lower, operating cash flow weakened from positive to negative, capital expenditure was higher, and free cash flow turned from positive to negative. Compared to the same quarter last year, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow remained negative but at a larger magnitude.
Monitor the trend in operating cash flow, as it turned negative this quarter despite positive levels in both comparison periods.