Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative this quarter, driven by negative operating cash flow, while revenue remained stable compared to the same quarter last year. The free cash flow margin improved slightly from a year ago but weakened significantly from the prior quarter.
- Revenue was stable year-over-year, but operating cash flow remained negative, resulting in negative free cash flow. Capital expenditure was similar to the prior year, so the negative free cash flow was primarily due to operating cash outflows.
- Compared to the preceding quarter, operating cash flow and free cash flow shifted from positive to negative, while revenue decreased. Versus the same quarter a year earlier, revenue was nearly unchanged, and both operating cash flow and free cash flow were less negative, leading to a marginally improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$870.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$545.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$522.1M
Cash generated by operations before capital spending.
CapEx
$23.1M
Capital spending and related asset purchases.
FCF margin
-15.8%
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 | $3.6B | -$195.4M | $19.3M | -$214.7M | -6.0% |
| 2022-09-30 | $3.4B | $489.3M | $23.1M | $466.2M | 13.5% |
| 2022-12-31 | $3.9B | $1.2B | $12.6M | $1.2B | 30.1% |
| 2023-03-31 | $3.4B | -$522.1M | $23.1M | -$545.2M | -15.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -239.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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.
Negative operating cash flow
Operating cash flow was negative this quarter, a reversal from the strong positive cash flow in the prior quarter and similar to the year-ago quarter's negative figure.
The negative operating cash flow drove free cash flow deeply negative despite stable revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable year-over-year, but operating cash flow remained negative, resulting in negative free cash flow. Capital expenditure was similar to the prior year, so the negative free cash flow was primarily due to operating cash outflows.
Compared to the preceding quarter, operating cash flow and free cash flow shifted from positive to negative, while revenue decreased. Versus the same quarter a year earlier, revenue was nearly unchanged, and both operating cash flow and free cash flow were less negative, leading to a marginally improved free cash flow margin.
Monitor the level of operating cash flow in the next quarter to assess whether it returns to positive territory.