Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow was negative and the margin weakened compared to both the prior quarter and the same quarter a year earlier. Revenue was lower than both periods, while operating cash flow turned more negative.
- Revenue declined while operating cash flow became more negative, resulting in a lower free cash flow margin. Capital expenditure remained at zero, so the entire cash outflow was from operations.
- Compared to the immediately preceding quarter, free cash flow was lower and the margin weakened. Versus the same quarter one year earlier, both free cash flow and margin also deteriorated.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$243.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$83.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$83.7M
Cash generated by operations before capital spending.
CapEx
$0
Capital spending and related asset purchases.
FCF margin
-119.4%
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 | $80.4M | -$53.7M | $0 | -$53.7M | -66.8% |
| 2022-09-30 | $73.7M | -$59.0M | $0 | -$59.0M | -80.1% |
| 2022-12-31 | $71.3M | -$46.7M | $0 | -$46.7M | -65.5% |
| 2023-03-31 | $70.1M | -$83.7M | $0 | -$83.7M | -119.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 204.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $383.0M | 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 was lower than both the prior quarter and the year-ago quarter, while revenue also declined. This drove the free cash flow margin to a more negative level.
The deterioration in operating cash flow was the primary factor behind the weaker free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined while operating cash flow became more negative, resulting in a lower free cash flow margin. Capital expenditure remained at zero, so the entire cash outflow was from operations.
Compared to the immediately preceding quarter, free cash flow was lower and the margin weakened. Versus the same quarter one year earlier, both free cash flow and margin also deteriorated.
Monitor the company's operating cash flow trajectory, as the filing notes that cash generation depends on efficiently acquiring and maintaining customers while pricing insurance products appropriately.