Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter last year, but operating cash flow turned positive from negative, leading to a smaller free cash flow deficit. Sequentially, revenue and cash generation weakened sharply, with free cash flow swinging from positive to negative.
- Operating cash flow was a small fraction of revenue, and capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative free cash flow margin.
- Compared to the prior quarter, revenue was lower, operating cash flow was substantially lower, and free cash flow turned from positive to negative. Versus the same quarter last year, revenue was stable, operating cash flow improved from negative to positive, and the free cash flow deficit narrowed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$193.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$47.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$14.0M
Cash generated by operations before capital spending.
CapEx
$61.6M
Capital spending and related asset purchases.
FCF margin
-3.1%
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 |
|---|---|---|---|---|---|
| 2022-07-02 | $1.5B | $45.3M | $39.4M | $5.9M | 0.4% |
| 2022-10-01 | $1.6B | -$43.4M | $44.5M | -$87.9M | -5.6% |
| 2022-12-31 | $1.8B | $395.1M | $72.0M | $323.1M | 17.6% |
| 2023-04-01 | $1.5B | $14.0M | $61.6M | -$47.6M | -3.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -147.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $390.8M | 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 weakness
Operating cash flow was very low relative to revenue, and insufficient to cover capital expenditure, causing negative free cash flow. This is the strongest observable driver of the quarter's cash conversion outcome.
The low operating cash flow level is the primary factor behind the negative free cash flow and margin.
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, and capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative free cash flow margin.
Compared to the prior quarter, revenue was lower, operating cash flow was substantially lower, and free cash flow turned from positive to negative. Versus the same quarter last year, revenue was stable, operating cash flow improved from negative to positive, and the free cash flow deficit narrowed.
Monitor whether capital expenditure continues to exceed operating cash flow, as this directly drives free cash flow pressure.