Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative this quarter, driven by a sharp decline in operating cash flow. Revenue increased from a year ago but decreased from the prior quarter.
- Operating cash flow was low relative to revenue, and capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative margin.
- Compared to the prior quarter, operating cash flow and free cash flow weakened markedly, while capital expenditure decreased. Versus the same quarter last year, operating cash flow and free cash flow also declined, though revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$498.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$138.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$19.6M
Cash generated by operations before capital spending.
CapEx
$157.9M
Capital spending and related asset purchases.
FCF margin
-4.2%
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 |
|---|---|---|---|---|---|
| 2022-06-25 | $3.9B | $566.5M | $152.9M | $413.6M | 10.6% |
| 2022-09-24 | $3.3B | $725000 | $185.8M | -$185.1M | -5.7% |
| 2022-12-31 | $4.0B | $730.6M | $322.2M | $408.4M | 10.2% |
| 2023-04-01 | $3.3B | $19.6M | $157.9M | -$138.4M | -4.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -75.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Weakened operating cash flow
Operating cash flow decreased sharply from both the prior quarter and the year-ago quarter, while capital expenditure was lower but still exceeded operating cash flow.
The decline in operating cash flow was the primary cause of negative free cash flow and reduced cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was low relative to revenue, and capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative margin.
Compared to the prior quarter, operating cash flow and free cash flow weakened markedly, while capital expenditure decreased. Versus the same quarter last year, operating cash flow and free cash flow also declined, though revenue was higher.
Monitor whether operating cash flow recovers in the coming quarters to support positive free cash flow.