Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined sharply from both the prior quarter and the same quarter last year, while operating cash flow turned deeply negative, resulting in a large free cash flow deficit. The free cash flow margin weakened significantly compared to both prior periods.
- Revenue was positive but operating cash flow was negative, indicating cash conversion was unfavorable as cash outflows exceeded inflows from operations. Capital expenditure remained present, further deepening the free cash flow deficit.
- Compared to the immediately preceding quarter, revenue was lower and operating cash flow shifted from positive to negative, causing free cash flow to turn from positive to negative. Versus the same quarter one year earlier, all metrics were lower, with operating cash flow and free cash flow both moving from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$612.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.2B
Cash generated by operations before capital spending.
CapEx
$113.0M
Capital spending and related asset purchases.
FCF margin
-71.9%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $4.7B | $304.0M | $87.0M | $217.0M | 4.6% |
| 2022-09-30 | $3.4B | $252.0M | $89.0M | $163.0M | 4.8% |
| 2022-12-31 | $5.1B | $1.7B | $92.0M | $1.6B | 30.9% |
| 2023-03-31 | $1.9B | -$1.2B | $113.0M | -$1.3B | -71.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1693.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | 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 Reversal
Operating cash flow moved from positive in both comparison periods to negative in the current quarter, while revenue also declined. This was the strongest observable driver of the free cash flow deficit.
The negative operating cash flow was the primary factor behind the large free cash flow deficit, outweighing the relatively stable capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was positive but operating cash flow was negative, indicating cash conversion was unfavorable as cash outflows exceeded inflows from operations. Capital expenditure remained present, further deepening the free cash flow deficit.
Compared to the immediately preceding quarter, revenue was lower and operating cash flow shifted from positive to negative, causing free cash flow to turn from positive to negative. Versus the same quarter one year earlier, all metrics were lower, with operating cash flow and free cash flow both moving from positive to negative.
Monitor the trajectory of operating cash flow, as it turned negative while revenue remained positive, suggesting a significant shift in cash generation efficiency.