SO
SOFI
Jun 30, 2023
Quarter ended Jun 30, 2023 · FY2023 Q2

SoFi Technologies, Inc. stock research

SoFi Technologies (SOFI) Free Cash Flow — Quarter Ended Jun 30, 2023

Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow and free cash flow remained deeply negative, with the free cash flow margin improving from the prior quarter but weakening versus the year-ago period.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow and free cash flow remained deeply negative, with the free cash flow margin improving from the prior quarter but weakening versus the year-ago period.

  • Revenue rose while operating cash flow was a large negative outflow, resulting in a negative free cash flow margin. Capital expenditure increased slightly from both comparison periods, but the cash conversion from revenue remained negative.
  • Compared to the prior quarter, operating cash flow and free cash flow were less negative, and the free cash flow margin improved. Versus the same quarter one year earlier, operating cash flow and free cash flow were more negative, and the free cash flow margin weakened.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

-$9.7B

Trailing twelve-month free cash flow.

Quarter free cash flow

-$2.1B

Free cash flow in the selected fiscal quarter.

Operating cash flow

-$2.1B

Cash generated by operations before capital spending.

CapEx

$25.4M

Capital spending and related asset purchases.

FCF margin

-2010.9%

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.

PeriodRevenueOperating CFCapExFCFFCF margin
2022-09-30$102.0M-$2.9B$23.4M-$2.9B-2846.7%
2022-12-31$99.6M-$2.4B$22.7M-$2.4B-2450.2%
2023-03-31$95.5M-$2.2B$23.7M-$2.2B-2342.3%
2023-06-30$104.7M-$2.1B$25.4M-$2.1B-2010.9%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income4427.6%Shows whether accounting earnings convert into cash.
CapEx / revenue24.2%Lower capital intensity usually supports FCF margin.
Net cashn/aCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Watch

Negative cash generation

Operating cash flow was a substantial negative amount, driving free cash flow deeply negative. The free cash flow margin was negative, indicating that revenue did not convert into positive cash flow.

The company's cash generation from operations remains negative, requiring external funding to support operations and investments.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Revenue rose while operating cash flow was a large negative outflow, resulting in a negative free cash flow margin. Capital expenditure increased slightly from both comparison periods, but the cash conversion from revenue remained negative.

Compared to the prior quarter, operating cash flow and free cash flow were less negative, and the free cash flow margin improved. Versus the same quarter one year earlier, operating cash flow and free cash flow were more negative, and the free cash flow margin weakened.

Monitor the trajectory of operating cash flow, as it remains a large negative outflow despite revenue growth.