Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative as operating cash flow swung from positive to negative, despite higher revenue. The negative free cash flow margin reflects a significant cash conversion shortfall.
- Revenue increased but operating cash flow was negative, resulting in negative free cash flow and a negative margin. Capital expenditure remained stable, so the cash conversion weakness stemmed entirely from operating cash flow.
- Compared to the prior quarter, both operating and free cash flow weakened substantially, falling from large positive to negative. Versus the same quarter last year, free cash flow also declined, though the prior year figure was positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$62.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$8.0M
Cash generated by operations before capital spending.
CapEx
$54.0M
Capital spending and related asset purchases.
FCF margin
-2.9%
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 |
|---|---|---|---|---|---|
| 2022-07-02 | $2.1B | $10.0M | $59.0M | -$49.0M | -2.3% |
| 2022-10-01 | $2.4B | $388.0M | $70.0M | $318.0M | 13.4% |
| 2022-12-31 | $2.7B | $1.3B | $73.0M | $1.2B | 44.3% |
| 2023-04-01 | $2.2B | -$8.0M | $54.0M | -$62.0M | -2.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -22.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.0B | 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 Swing
Operating cash flow turned from significantly positive to negative, driven by higher working capital and a one-time tax payment as noted in the filing.
This swing was the primary cause of negative free cash flow for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased but operating cash flow was negative, resulting in negative free cash flow and a negative margin. Capital expenditure remained stable, so the cash conversion weakness stemmed entirely from operating cash flow.
Compared to the prior quarter, both operating and free cash flow weakened substantially, falling from large positive to negative. Versus the same quarter last year, free cash flow also declined, though the prior year figure was positive.
Monitor the sustainability of operating cash flow, as the current quarter's negative value was influenced by higher working capital and a one-time tax payment.