Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the preceding quarter but higher than the same quarter one year earlier. Operating cash flow and free cash flow improved from negative values a year ago, though they declined sequentially.
- Operating cash flow as a percentage of revenue improved markedly versus the prior year quarter when cash flow was negative, but weakened from the immediate prior quarter. Free cash flow margin turned positive from a deeply negative level a year earlier, while declining from the preceding quarter's level.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all were lower. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow and 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
-$91.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$14.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$42.0M
Cash generated by operations before capital spending.
CapEx
$27.8M
Capital spending and related asset purchases.
FCF margin
0.9%
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 | $1.4B | -$205.7M | $23.1M | -$228.8M | -16.3% |
| 2022-09-30 | $1.5B | $4.4M | $23.5M | -$19.1M | -1.3% |
| 2022-12-31 | $1.7B | $180.7M | $38.3M | $142.4M | 8.6% |
| 2023-03-31 | $1.5B | $42.0M | $27.8M | $14.2M | 0.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 28.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash flow recovery from prior year
The most notable observable driver is the shift in operating cash flow from a negative position in the year-ago quarter to a positive figure in the current quarter. This change, alongside a rise in revenue, contributed to free cash flow turning positive compared to a deficit a year earlier.
The cash flow recovery from the prior year quarter is a positive change, though the sequential weakening warrants continued observation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved markedly versus the prior year quarter when cash flow was negative, but weakened from the immediate prior quarter. Free cash flow margin turned positive from a deeply negative level a year earlier, while declining from the preceding quarter's level.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all were lower. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow and free cash flow margin improved from negative to positive.
Monitor the sustainability of operating cash flow generation relative to revenue, given the sequential decline from the prior quarter.