Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow weakened sequentially and was slightly lower year-over-year, resulting in negative free cash flow for the current quarter.
- Operating cash flow as a proportion of revenue declined compared to both the prior quarter and the year-ago quarter, while capital expenditure exceeded operating cash flow, producing a negative free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased, and the free cash flow margin turned negative. Versus the same quarter one year earlier, revenue was higher, but operating cash flow was slightly lower and free cash flow turned from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$419.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$13.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$161.0M
Cash generated by operations before capital spending.
CapEx
$174.0M
Capital spending and related asset purchases.
FCF margin
-1.0%
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 | $1.6B | $116.3M | $80.9M | $35.4M | 2.2% |
| 2022-09-30 | $1.8B | $274.5M | $88.4M | $186.1M | 10.3% |
| 2022-12-31 | $1.5B | $430.3M | $219.1M | $211.2M | 14.3% |
| 2023-03-31 | $1.4B | $161.0M | $174.0M | -$13.0M | -1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -10.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Outpacing Operating Cash Flow
Capital expenditure was higher than operating cash flow in the current quarter, a reversal from both the prior quarter and the year-ago quarter when operating cash flow covered capital expenditure.
This shift caused free cash flow to turn negative despite higher revenue compared to the year-ago 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 declined compared to both the prior quarter and the year-ago quarter, while capital expenditure exceeded operating cash flow, producing a negative free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased, and the free cash flow margin turned negative. Versus the same quarter one year earlier, revenue was higher, but operating cash flow was slightly lower and free cash flow turned from positive to negative.
Monitor the relationship between capital expenditure and operating cash flow, as capital expenditure exceeded operating cash flow in the current quarter.