Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter and the same quarter last year. Free cash flow turned negative, driven by a large operating cash outflow.
- Operating cash flow was negative, resulting in a negative free cash flow and a negative free cash flow margin. Capital expenditure was lower than both comparison periods, but the cash conversion was weakened by the operating cash deficit.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were sharply lower, turning from positive to negative. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all lower, and the margin weakened from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$153.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$149.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$135.3M
Cash generated by operations before capital spending.
CapEx
$13.9M
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 |
|---|---|---|---|---|---|
| 2022-10-02 | $711.8M | $160.0M | $13.0M | $146.9M | 20.6% |
| 2023-01-01 | $741.2M | $139.2M | $26.1M | $113.0M | 15.2% |
| 2023-04-02 | $674.9M | $63.5M | $20.9M | $42.5M | 6.3% |
| 2023-07-02 | $709.1M | -$135.3M | $13.9M | -$149.3M | -21.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -419.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | 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 Swing
Operating cash flow moved from positive in both comparison periods to negative in the current quarter. This swing is the strongest observable driver of the negative free cash flow and margin.
The negative operating cash flow fully offset the lower capital expenditure, resulting in a free cash flow deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, resulting in a negative free cash flow and a negative free cash flow margin. Capital expenditure was lower than both comparison periods, but the cash conversion was weakened by the operating cash deficit.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were sharply lower, turning from positive to negative. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all lower, and the margin weakened from positive to negative.
Monitor whether operating cash flow returns to positive levels in the next quarter, as the current negative cash flow is the primary driver of the free cash flow deficit.