Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company reported negative free cash flow this quarter, with operating cash flow also in negative territory. Revenue declined from both the prior quarter and the same quarter last year, while free cash flow margin improved from the prior quarter but weakened compared to a year ago.
- Revenue was lower than the prior quarter and the year-ago quarter. Operating cash flow was negative but less negative than the prior quarter, while capital expenditure was slightly higher. Free cash flow remained negative, with a margin that improved from the prior quarter but was negative.
- Compared to the prior quarter, revenue was lower, operating cash flow improved (less negative), free cash flow improved, and free cash flow margin improved. Compared to the same quarter last year, revenue was lower, operating cash flow turned from positive to negative, free cash flow turned from positive to negative, and margin turned from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$146.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$52.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$34.0M
Cash generated by operations before capital spending.
CapEx
$18.0M
Capital spending and related asset purchases.
FCF margin
-4.3%
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 |
|---|---|---|---|---|---|
| 2022-10-01 | $1.4B | $67.0M | $20.0M | $47.0M | 3.4% |
| 2022-12-31 | $1.5B | $267.0M | $24.0M | $243.0M | 16.2% |
| 2023-04-01 | $1.4B | -$76.0M | $16.0M | -$92.0M | -6.5% |
| 2023-07-01 | $1.2B | -$34.0M | $18.0M | -$52.0M | -4.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -36.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | 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 improvement
Operating cash flow, while still negative, improved significantly from the prior quarter, reducing the free cash flow deficit.
This improvement lessened the cash outflow but the company remains in a negative free cash flow position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter and the year-ago quarter. Operating cash flow was negative but less negative than the prior quarter, while capital expenditure was slightly higher. Free cash flow remained negative, with a margin that improved from the prior quarter but was negative.
Compared to the prior quarter, revenue was lower, operating cash flow improved (less negative), free cash flow improved, and free cash flow margin improved. Compared to the same quarter last year, revenue was lower, operating cash flow turned from positive to negative, free cash flow turned from positive to negative, and margin turned from positive to negative.
Monitor whether operating cash flow can return to positive levels in upcoming quarters.