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 current quarter, reflecting operating cash outflow and capital spending. Revenue was stable compared to the prior quarter but higher than the same quarter last year, while cash conversion weakened significantly year-over-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 that revenue generation did not translate into positive cash flow during the quarter.
- Compared to the immediately preceding quarter, operating cash flow improved (less negative) and free cash flow also improved, though both remained negative. Versus the same quarter one year earlier, operating cash flow shifted from positive to negative, and free cash flow turned from positive to negative, representing a significant weakening.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$203.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$101.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$34.7M
Cash generated by operations before capital spending.
CapEx
$66.5M
Capital spending and related asset purchases.
FCF margin
-7.0%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $1.1B | $100.8M | $42.5M | $58.3M | 5.3% |
| 2022-09-30 | $1.4B | $54.6M | $56.9M | -$2.3M | -0.2% |
| 2022-12-31 | $1.4B | -$119.6M | $38.3M | -$157.9M | -11.2% |
| 2023-03-31 | $1.4B | -$34.7M | $66.5M | -$101.2M | -7.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 16.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$905.6M | 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 trend
Operating cash flow was negative in the current quarter, though less negative than the prior quarter. This is a key driver of free cash flow, as capital expenditure remained relatively stable.
The sustained negative operating cash flow directly contributed to negative free cash flow and margin.
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 that revenue generation did not translate into positive cash flow during the quarter.
Compared to the immediately preceding quarter, operating cash flow improved (less negative) and free cash flow also improved, though both remained negative. Versus the same quarter one year earlier, operating cash flow shifted from positive to negative, and free cash flow turned from positive to negative, representing a significant weakening.
Monitor whether operating cash flow can turn positive in future quarters, as it has been negative for two consecutive quarters.