Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. Operating cash flow turned positive, resulting in a positive free cash flow margin after two consecutive negative periods.
- Revenue remained unchanged, while operating cash flow improved from negative to positive, driving free cash flow to a positive figure. Capital expenditure was slightly higher than the prior quarter but lower than a year ago, and the free cash flow margin turned positive from negative in both comparison periods.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved from negative to positive, and the free cash flow margin strengthened. Versus the same quarter one year earlier, the same metrics also shifted from deeply negative to positive, representing a significant improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$65.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$86.7M
Cash generated by operations before capital spending.
CapEx
$21.1M
Capital spending and related asset purchases.
FCF margin
5.9%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $1.0B | $4.2B | $57.9M | $4.1B | 392.9% |
| 2023-03-31 | $1.1B | -$164.9M | $11.5M | -$176.4M | -16.6% |
| 2023-06-30 | $1.1B | -$99.4M | $20.1M | -$119.5M | -10.9% |
| 2023-09-30 | $1.1B | $86.7M | $21.1M | $65.6M | 5.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 20.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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 turned positive this quarter after being negative in both the prior quarter and the same quarter last year. This shift was the primary factor behind the positive free cash flow and margin.
The improvement in operating cash flow directly converted stable revenue into positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained unchanged, while operating cash flow improved from negative to positive, driving free cash flow to a positive figure. Capital expenditure was slightly higher than the prior quarter but lower than a year ago, and the free cash flow margin turned positive from negative in both comparison periods.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved from negative to positive, and the free cash flow margin strengthened. Versus the same quarter one year earlier, the same metrics also shifted from deeply negative to positive, representing a significant improvement.
Monitor whether operating cash flow can sustain its positive level in the coming quarter, given the prior volatility.