Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable, but free cash flow turned negative as operating cash flow decreased and capital expenditure increased significantly. Free cash flow margin weakened from positive to negative compared to both the prior quarter and the same quarter last year.
- Revenue was stable sequentially and year over year, but operating cash flow declined, and capital expenditure rose sharply, resulting in free cash flow turning negative. The free cash flow margin weakened from positive to negative.
- Compared to the prior quarter, revenue was slightly higher but operating cash flow was lower, capital expenditure was much higher, and free cash flow shifted from positive to negative. Versus the same quarter last year, revenue was unchanged, operating cash flow was lower, capital expenditure was higher, and free cash flow was significantly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$39.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$390.8M
Cash generated by operations before capital spending.
CapEx
$430.6M
Capital spending and related asset purchases.
FCF margin
-1.9%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $2.2B | $1.0B | $271.1M | $731.3M | 33.4% |
| 2022-12-31 | $2.1B | $731.3M | $373.0M | $358.3M | 17.0% |
| 2023-03-31 | $2.0B | $408.9M | $321.5M | $87.4M | 4.5% |
| 2023-06-30 | $2.1B | $390.8M | $430.6M | -$39.8M | -1.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -6.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$877.4M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure rose sharply compared to both the prior quarter and the same quarter last year, outpacing operating cash flow and driving free cash flow negative.
The increase in capital expenditure was the primary factor that turned free cash flow negative and weakened the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and year over year, but operating cash flow declined, and capital expenditure rose sharply, resulting in free cash flow turning negative. The free cash flow margin weakened from positive to negative.
Compared to the prior quarter, revenue was slightly higher but operating cash flow was lower, capital expenditure was much higher, and free cash flow shifted from positive to negative. Versus the same quarter last year, revenue was unchanged, operating cash flow was lower, capital expenditure was higher, and free cash flow was significantly lower.
Monitor future capital expenditure levels, as the filing notes they are primarily directed toward manufacturing equipment and can materially influence available cash.