Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose sharply from both the prior quarter and the year-ago quarter, yet operating cash flow turned negative, resulting in a negative free cash flow margin. The cash conversion weakened significantly compared to the preceding quarter, though it improved relative to the same quarter last year.
- Revenue increased while operating cash flow shifted from positive to negative, and capital expenditure remained stable, causing free cash flow to turn negative and the margin to decline from positive to negative.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, with the margin weakening from positive to negative. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow improved from negative to less negative, and the margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$626.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$17.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$9.3M
Cash generated by operations before capital spending.
CapEx
$8.2M
Capital spending and related asset purchases.
FCF margin
-0.8%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $1.9B | $313.6M | $10.7M | $302.8M | 16.4% |
| 2022-12-31 | $1.8B | $161.1M | $9.9M | $151.2M | 8.4% |
| 2023-03-31 | $1.3B | $198.2M | $8.0M | $190.3M | 14.8% |
| 2023-06-30 | $2.2B | -$9.3M | $8.2M | -$17.5M | -0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -9.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | $320.3M | 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
Despite a substantial increase in revenue, operating cash flow turned negative, which was the primary factor behind the negative free cash flow and margin.
The negative operating cash flow directly drove free cash flow into negative territory and reversed the margin from positive to negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow shifted from positive to negative, and capital expenditure remained stable, causing free cash flow to turn negative and the margin to decline from positive to negative.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, with the margin weakening from positive to negative. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow improved from negative to less negative, and the margin also improved.
Monitor whether operating cash flow can return to positive levels given the revenue growth trajectory.