Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. However, operating cash flow turned negative, resulting in a negative free cash flow margin.
- Despite higher revenue, operating cash flow was minimal and far lower than capital expenditure, producing negative free cash flow. The free cash flow margin weakened sharply compared to the prior quarter and remained negative versus the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was lower while operating cash flow and free cash flow both declined significantly, turning from positive to negative. Versus the same quarter one year earlier, revenue was higher and the free cash flow deficit narrowed, though operating cash flow remained negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$68.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$8.5M
Cash generated by operations before capital spending.
CapEx
$77.1M
Capital spending and related asset purchases.
FCF margin
-1.9%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $4.2B | $421.7M | $69.1M | $352.6M | 8.4% |
| 2022-09-30 | $4.4B | $510.2M | $58.9M | $451.3M | 10.3% |
| 2022-12-31 | $4.1B | $760.3M | $89.0M | $671.3M | 16.5% |
| 2023-03-31 | $3.7B | $8.5M | $77.1M | -$68.6M | -1.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -22.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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.
Operating Cash Flow Weakness
Operating cash flow was substantially lower than both the prior quarter and the year-ago quarter, despite higher revenue. This was the primary factor behind the negative free cash flow.
The weak operating cash flow drove free cash flow into negative territory and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was minimal and far lower than capital expenditure, producing negative free cash flow. The free cash flow margin weakened sharply compared to the prior quarter and remained negative versus the year-ago quarter.
Compared to the immediately preceding quarter, revenue was lower while operating cash flow and free cash flow both declined significantly, turning from positive to negative. Versus the same quarter one year earlier, revenue was higher and the free cash flow deficit narrowed, though operating cash flow remained negative.
Monitor whether operating cash flow can recover to a level that sustains capital expenditure without relying on external financing.