Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the current quarter, a decline from the prior quarter but an improvement from the same quarter last year. Revenue was higher than the preceding quarter but lower than the year-ago period.
- Operating cash flow turned positive compared to the year-ago quarter, yet capital expenditure increased, resulting in negative free cash flow. The free cash flow margin improved from the prior year but weakened sequentially.
- Compared to the prior quarter, operating cash flow and free cash flow both decreased, and the free cash flow margin turned negative. Versus the same quarter last year, operating cash flow improved from negative to positive, and the free cash flow deficit narrowed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$842.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$28.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$33.0M
Cash generated by operations before capital spending.
CapEx
$61.0M
Capital spending and related asset purchases.
FCF margin
-1.4%
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 | $2.4B | $401.0M | $43.0M | $358.0M | 15.2% |
| 2022-09-30 | $2.2B | $346.0M | $67.0M | $279.0M | 12.7% |
| 2022-12-31 | $1.9B | $320.0M | $87.0M | $233.0M | 12.1% |
| 2023-03-31 | $2.0B | $33.0M | $61.0M | -$28.0M | -1.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -13.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | 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 turned positive in the current quarter after being negative in the same quarter last year, indicating a year-over-year improvement in cash generation from operations.
This improvement narrowed the free cash flow deficit compared to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned positive compared to the year-ago quarter, yet capital expenditure increased, resulting in negative free cash flow. The free cash flow margin improved from the prior year but weakened sequentially.
Compared to the prior quarter, operating cash flow and free cash flow both decreased, and the free cash flow margin turned negative. Versus the same quarter last year, operating cash flow improved from negative to positive, and the free cash flow deficit narrowed.
Capital expenditure was higher than both the prior quarter and the year-ago quarter, which contributed to the negative free cash flow despite improved operating cash flow.