Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, the company reported negative free cash flow, a sharp reversal from both the prior quarter and the same quarter last year. Revenue was relatively stable, but cash generation weakened significantly.
- Operating cash flow turned negative, resulting in a negative free cash flow margin, indicating that revenue was not efficiently converted into cash during the period.
- Compared to the immediately preceding quarter, operating and free cash flows moved from strongly positive to negative. Versus the same quarter one year earlier, both operating and free cash flows also shifted from positive to negative.
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
-$176.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$164.9M
Cash generated by operations before capital spending.
CapEx
$11.5M
Capital spending and related asset purchases.
FCF margin
-16.6%
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 | $1.1B | -$1.6B | $21.4M | -$1.6B | -142.7% |
| 2022-09-30 | $1.1B | -$895.7M | $23.5M | -$919.2M | -85.2% |
| 2022-12-31 | $1.0B | $4.2B | $57.9M | $4.1B | 392.9% |
| 2023-03-31 | $1.1B | -$164.9M | $11.5M | -$176.4M | -16.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -52.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | 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 Swing
The most prominent driver of the free cash flow decline was the steep drop in operating cash flow, which turned negative despite a slight increase in revenue from the prior quarter.
The negative free cash flow reduces internally generated funds available for capital deployment.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned negative, resulting in a negative free cash flow margin, indicating that revenue was not efficiently converted into cash during the period.
Compared to the immediately preceding quarter, operating and free cash flows moved from strongly positive to negative. Versus the same quarter one year earlier, both operating and free cash flows also shifted from positive to negative.
Monitor whether operating cash flow can return to positive territory in the coming quarters.