Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the quarter, driven by a large operating cash outflow. Revenue declined compared to both the prior quarter and the same quarter last year.
- Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin. This indicates cash conversion was weak for the quarter.
- Compared to the prior quarter, operating cash flow and free cash flow both turned from positive to negative, and revenue was lower. Versus the same quarter last year, operating cash flow and free cash flow improved from a larger negative position, though revenue was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$963.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$354.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$286.3M
Cash generated by operations before capital spending.
CapEx
$68.2M
Capital spending and related asset purchases.
FCF margin
-9.0%
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 |
|---|---|---|---|---|---|
| 2022-07-02 | $4.4B | -$443.9M | $145.7M | -$589.6M | -13.4% |
| 2022-10-01 | $4.1B | -$425.6M | $114.4M | -$540.0M | -13.1% |
| 2022-12-31 | $4.0B | $651.1M | $130.5M | $520.6M | 13.1% |
| 2023-04-01 | $3.9B | -$286.3M | $68.2M | -$354.5M | -9.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 188.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.7B | 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 Outflow
The primary observable driver of the negative free cash flow was the large negative operating cash flow, which more than offset capital expenditure. Revenue was lower than both comparison periods.
The negative operating cash flow directly caused free cash flow to be negative for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin. This indicates cash conversion was weak for the quarter.
Compared to the prior quarter, operating cash flow and free cash flow both turned from positive to negative, and revenue was lower. Versus the same quarter last year, operating cash flow and free cash flow improved from a larger negative position, though revenue was also lower.
Monitor whether operating cash flow can return to positive levels in the coming quarters.