Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter one year earlier, while operating cash flow turned positive, resulting in positive free cash flow. However, free cash flow declined significantly from the preceding quarter, driven by a lower operating cash flow and a smaller reduction in capital expenditure.
- Operating cash flow improved from a negative level to a positive level year over year, but was substantially lower than the preceding quarter. Capital expenditure was lower than both prior periods, and free cash flow turned positive compared to a year ago, though the free cash flow margin weakened relative to the preceding quarter.
- Compared to the preceding quarter, revenue was lower, operating cash flow and free cash flow were significantly lower, and free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was stable, while operating cash flow and free cash flow improved from negative to positive, and free cash flow margin turned positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$54.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$75.3M
Cash generated by operations before capital spending.
CapEx
$20.9M
Capital spending and related asset purchases.
FCF margin
3.6%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $2.0B | $632.8M | $81.5M | $551.3M | 27.2% |
| 2023-04-01 | $1.5B | $112.4M | $40.8M | $71.6M | 4.7% |
| 2023-07-01 | $1.6B | $400.4M | $34.6M | $365.8M | 22.6% |
| 2023-09-30 | $1.5B | $75.3M | $20.9M | $54.4M | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 27.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.0B | 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 operating cash flow turnaround
Operating cash flow reversed from a negative figure in the same quarter one year earlier to a positive figure in the current quarter, marking a clear improvement in cash generation from operations. This was the primary factor behind the year-over-year swing in free cash flow from negative to positive.
The positive operating cash flow enabled positive free cash flow despite a stable revenue base.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved from a negative level to a positive level year over year, but was substantially lower than the preceding quarter. Capital expenditure was lower than both prior periods, and free cash flow turned positive compared to a year ago, though the free cash flow margin weakened relative to the preceding quarter.
Compared to the preceding quarter, revenue was lower, operating cash flow and free cash flow were significantly lower, and free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was stable, while operating cash flow and free cash flow improved from negative to positive, and free cash flow margin turned positive.
Monitor the level of capital expenditure, which decreased in the current quarter and may influence future free cash flow generation.