Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined compared to both the preceding quarter and the same quarter last year. Operating cash flow was negative, resulting in a negative free cash flow margin that improved from the prior quarter but weakened significantly from a year ago.
- Revenue of six hundred seventy million dollars converted into negative operating cash flow of thirty-three million dollars, leading to negative free cash flow of fifty-five million dollars after capital expenditure of twenty-two million dollars. The free cash flow margin of negative eight percent reflects that cash outflows exceeded inflows during the quarter.
- Compared to the prior quarter, revenue was lower and the negative free cash flow margin narrowed, indicating relative improvement in cash generation. Versus the same quarter a year ago, revenue was lower and free cash flow reversed from a positive margin to a negative margin, representing a clear weakening.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$49.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$55.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$33.5M
Cash generated by operations before capital spending.
CapEx
$22.4M
Capital spending and related asset purchases.
FCF margin
-8.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-10-01 | $670.7M | -$33.5M | $22.4M | -$55.8M | -8.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -588.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Negative Operating Cash Flow
Operating cash flow was negative in the current quarter, which contrasts sharply with the positive operating cash flow of one hundred sixty million dollars reported in the same quarter last year. This reversal is the strongest observable factor behind the negative free cash flow and margin.
The shift from positive to negative operating cash flow is the single largest contributor to the deterioration in free cash flow compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue of six hundred seventy million dollars converted into negative operating cash flow of thirty-three million dollars, leading to negative free cash flow of fifty-five million dollars after capital expenditure of twenty-two million dollars. The free cash flow margin of negative eight percent reflects that cash outflows exceeded inflows during the quarter.
Compared to the prior quarter, revenue was lower and the negative free cash flow margin narrowed, indicating relative improvement in cash generation. Versus the same quarter a year ago, revenue was lower and free cash flow reversed from a positive margin to a negative margin, representing a clear weakening.
Monitor whether operating cash flow can return to positive territory, as the current negative level is the primary driver of the negative free cash flow.