Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to a negative figure in the same quarter a year earlier, while declining slightly from the prior quarter. Revenue was stable sequentially and modestly higher year over year, with operating cash flow improving significantly from the year-ago negative level.
- Revenue was stable sequentially. Operating cash flow was lower than the prior quarter but substantially higher than the year-ago quarter, resulting in a positive free cash flow margin after a negative margin a year ago. Capital expenditure was lower than the prior quarter.
- Compared with the preceding quarter, free cash flow and margin both weakened. Compared with the same quarter a year earlier, free cash flow and margin improved sharply, turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$810.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$178.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$203.0M
Cash generated by operations before capital spending.
CapEx
$24.4M
Capital spending and related asset purchases.
FCF margin
12.9%
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.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2022-07-03 | $1.4B | $196.9M | $20.8M | $176.1M | 13.0% |
| 2022-10-02 | $1.4B | $268.9M | $16.7M | $252.2M | 18.5% |
| 2023-01-01 | $1.4B | $237.7M | $34.1M | $203.6M | 14.4% |
| 2023-04-02 | $1.4B | $203.0M | $24.4M | $178.6M | 12.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash flow recovery
Free cash flow shifted from negative to positive compared with the same quarter a year ago, reflecting a substantial improvement in operating cash flow.
This recovery highlights the company's ability to generate positive cash from operations after a prior year deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially. Operating cash flow was lower than the prior quarter but substantially higher than the year-ago quarter, resulting in a positive free cash flow margin after a negative margin a year ago. Capital expenditure was lower than the prior quarter.
Compared with the preceding quarter, free cash flow and margin both weakened. Compared with the same quarter a year earlier, free cash flow and margin improved sharply, turning from negative to positive.
Monitor the trend in operating cash flow relative to revenue, as the sequential decline warrants attention.