Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the prior quarter but operating cash flow turned negative, leading to a negative free cash flow margin. Compared to the same quarter last year, revenue increased while operating cash flow and free cash flow both weakened significantly.
- Despite higher revenue, operating cash flow was negative, resulting in a free cash flow deficit. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter, contributing to the negative free cash flow margin.
- Compared to the immediately preceding quarter, revenue was slightly lower, while operating cash flow and free cash flow shifted from positive to negative. Versus the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow both declined sharply.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$691.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$57.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$25.0M
Cash generated by operations before capital spending.
CapEx
$32.0M
Capital spending and related asset purchases.
FCF margin
-2.6%
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 | $2.0B | $263.0M | $30.0M | $233.0M | 11.4% |
| 2022-09-30 | $2.1B | $204.0M | $32.0M | $172.0M | 8.3% |
| 2022-12-31 | $2.3B | $410.0M | $67.0M | $343.0M | 14.9% |
| 2023-03-31 | $2.2B | -$25.0M | $32.0M | -$57.0M | -2.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -32.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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.
Working Capital Shift
The filing indicates that net changes in working capital were a significant driver of the operating cash flow decline, with a notable negative impact from working capital movements.
This working capital shift was the strongest observable driver of the quarter's negative free cash flow.
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 negative, resulting in a free cash flow deficit. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter, contributing to the negative free cash flow margin.
Compared to the immediately preceding quarter, revenue was slightly lower, while operating cash flow and free cash flow shifted from positive to negative. Versus the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow both declined sharply.
Monitor the net change in working capital, which was cited as a primary factor in the operating cash flow decrease.