Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was negative, leading to negative free cash flow and a negative margin. Revenue was higher than both the prior quarter and the same quarter last year.
- Revenue increased, but operating cash flow turned negative, resulting in negative free cash flow and a negative margin. Capital expenditure was higher than both comparison periods.
- Compared to the prior quarter, operating cash flow improved from a larger negative to a smaller negative, and free cash flow improved similarly. Compared to the same quarter last year, operating cash flow and free cash flow weakened from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$666.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$624.0M
Cash generated by operations before capital spending.
CapEx
$42.0M
Capital spending and related asset purchases.
FCF margin
-21.1%
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 | $2.8B | $5.7B | $26.0M | $5.7B | 205.7% |
| 2022-09-30 | $3.0B | -$4.5B | $23.0M | -$4.5B | -150.6% |
| 2022-12-31 | $3.0B | -$3.1B | $27.0M | -$3.2B | -104.5% |
| 2023-03-31 | $3.2B | -$624.0M | $42.0M | -$666.0M | -21.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -156.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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 Turned Negative
Operating cash flow was negative this quarter, a shift from positive in the same quarter last year. The filing notes changes in revenue components such as asset management fees and account service fees, but does not specify the cause of the cash flow swing.
Negative operating cash flow drove free cash flow to a negative margin, contrasting with the positive margin a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, but operating cash flow turned negative, resulting in negative free cash flow and a negative margin. Capital expenditure was higher than both comparison periods.
Compared to the prior quarter, operating cash flow improved from a larger negative to a smaller negative, and free cash flow improved similarly. Compared to the same quarter last year, operating cash flow and free cash flow weakened from positive to negative.
Monitor whether operating cash flow can return to positive levels in upcoming quarters.