Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and higher than a year ago. Operating cash flow weakened sharply from the prior quarter, leading to negative free cash flow, though the free cash flow margin was slightly improved compared to the same quarter last year.
- Operating cash flow was a small fraction of revenue, resulting in a negative free cash flow after capital expenditure. The free cash flow margin was negative, indicating cash conversion was weak in the quarter.
- Compared to the prior quarter, operating cash flow and free cash flow were substantially lower, and the free cash flow margin turned from positive to negative. Versus the same quarter last year, operating cash flow was lower, but free cash flow and margin were slightly improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$685.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$41.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$38.4M
Cash generated by operations before capital spending.
CapEx
$80.3M
Capital spending and related asset purchases.
FCF margin
-0.9%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $4.2B | $118.7M | $121.6M | -$2.8M | -0.1% |
| 2022-09-30 | $4.5B | $343.4M | $106.0M | $237.4M | 5.3% |
| 2022-12-31 | $4.4B | $583.1M | $90.2M | $493.0M | 11.2% |
| 2023-03-31 | $4.4B | $38.4M | $80.3M | -$41.9M | -0.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -43.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 decline
Operating cash flow dropped sharply from the prior quarter and was lower than a year ago, despite revenue being stable sequentially and higher year-over-year. This was the strongest observable driver of the negative free cash flow.
The decline in operating cash flow directly caused free cash flow to turn negative in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was a small fraction of revenue, resulting in a negative free cash flow after capital expenditure. The free cash flow margin was negative, indicating cash conversion was weak in the quarter.
Compared to the prior quarter, operating cash flow and free cash flow were substantially lower, and the free cash flow margin turned from positive to negative. Versus the same quarter last year, operating cash flow was lower, but free cash flow and margin were slightly improved.
Monitor whether operating cash flow recovers from the current low level relative to revenue in the coming quarters.