Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was negative while operating cash flow remained positive, but capital expenditure exceeded operating cash flow, leading to a negative free cash flow. Compared to the prior quarter, free cash flow turned negative, while the free cash flow margin improved; versus the same quarter last year, free cash flow also turned negative, but the margin shifted from negative to positive.
- Revenue was negative, yet operating cash flow was positive, indicating that cash collection from operations exceeded reported revenue. However, capital expenditure was higher than operating cash flow, resulting in a negative free cash flow, while the free cash flow margin was positive.
- Compared to the prior quarter, revenue turned negative, operating cash flow and capital expenditure were both higher, and free cash flow moved from positive to negative. Compared to the same quarter last year, revenue remained negative, operating cash flow was slightly higher, capital expenditure was higher, and free cash flow also moved from positive to negative, while free cash flow margin improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$181.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$68.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$1.4B
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $578.0M | $1.1B | $1.2B | -$19.0M | -3.3% |
| 2022-12-31 | $3.3B | $1.3B | $1.1B | $199.0M | 6.0% |
| 2023-03-31 | $3.3B | $939.0M | $870.0M | $69.0M | 2.1% |
| 2023-06-30 | -$1.6B | $1.3B | $1.4B | -$68.0M | 4.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -11.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | -83.2% | 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.
Capital Expenditure Increase
Capital expenditure was higher than operating cash flow, causing free cash flow to be negative despite positive operating cash flow.
Elevated capital expenditure may continue to pressure free cash flow in subsequent periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was negative, yet operating cash flow was positive, indicating that cash collection from operations exceeded reported revenue. However, capital expenditure was higher than operating cash flow, resulting in a negative free cash flow, while the free cash flow margin was positive.
Compared to the prior quarter, revenue turned negative, operating cash flow and capital expenditure were both higher, and free cash flow moved from positive to negative. Compared to the same quarter last year, revenue remained negative, operating cash flow was slightly higher, capital expenditure was higher, and free cash flow also moved from positive to negative, while free cash flow margin improved from negative to positive.
Monitor the trend of capital expenditure relative to operating cash flow, as the company continues integrating a recently acquired business per the filing.